Healthcare cost and complexity are leaving Americans in need; employees and employers alike are searching for ways to help make paying for healthcare simple and convenient. The Healthcare Spending Card¹, offered through Lane Health, is an all-in-one financial tool that can help employees get the healthcare they deserve and can help their money work harder for them. There are no credit checks or annual fees² for employees, and no cost or credit risk to employers.
Challenge
Lane Health was seeking to evolve its credit card solution with highly configurable spend controls. They wanted to add capabilities that would ensure the Card¹could be fully implemented using APIs – allowing their system to more easily communicate with the payment solution technology. The need for more powerful spend controls emphasized the necessity for an efficient and open communication path to be the most impactful solution for Lane Health customers.
Solution
Lane Health partnered with modern payment card issuing company, CorServ to launch a Visa-approved first-of-its-kind merchant-restricted health spending card. CorServ’s Payment Cards as a Service API (PCaaSA) enabled Lane Health to build the solution that was perfect for what they needed while also providing the resources and insights to navigate this typically complex process with ease. Along with the guidance, CorServ’s solution also gives Lane Health access to in-depth analytics and reporting to provide them with the insights they were looking for in order to make the Healthcare Spending Card¹ issuing program a success.
Results
The Healthcare Spending Card¹ is a highly customizable and flexible card payment solution that controls user spending based on merchant category codes. With this payment card solution, customers can use one card for their healthcare bills by simply swiping it when they have a qualified healthcare expense – medical, dental, prescriptions, or vision. If consumers link their health savings account ³ (HSA), available pre-tax funds in that account will be applied as a form of repayment. Lane Health then provides consumers with convenient repayment options over time, up to 12 months¹.
“At the core of the solution is the desire to revolutionize the way people pay for healthcare,” said Lev Peysekhman, Chief Product Officer at Lane Health. “With CorServ’s PCaaSA, we were able to create a first-of-its-kind solution and provide our customers with a convenient and impactful resource to help alleviate the stresses of healthcare expenses.”
“CorServ addressed Lane Health’s unique business need and was able to deliver and embed innovative payment card capabilities for their partners,” said Anil Goyal, CEO of CorServ. “The power of APIs enables customization to offer the best solution for your market so companies like Lane Health can innovate and succeed.”
¹ The Healthcare Spending Card and the line of credit are issued by WebBank. Card must be activated before funds can be accessed.
² Each transaction is repaid on a 12-month term (with a minimum $3 due each payment period). Transactions other than dental or hospital expenses (based on merchant category code) will be charged an origination fee of 5% and periodic finance fees. The location of the service provider is not determinative of whether a transaction is a hospital expense. Rather, transactions made within or at a hospital (including but not limited to specialists, doctors, pharmacies, etcetera, are determined to be eligible by the associated MCC and not the location of the service provider in the hospital). New Advances, if eligible, can be repaid in full or over 4 installments with no origination or periodic finance fees. Late fees apply.
³ HSAs that are linked during application must be owned and in the name of the applicant and issued by the applicant’s employer.
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