All-in-one technology. (HumanaAccess MasterCard).

Technology is making Humana flexible spending as easy as a swipe of the card. In 2002, the company began offering the HumanaAccess MasterCard to its employees who are plan members with flexible-spending-account and/or health-reimbursement arrangements. The card, which is issued by Bankfirst and powered by Evolution Benefits Inc.'s Benny card, is used for health-plan identification and payment when visiting a provider or filling a prescription.

HumanaAccess MasterCard allows cardholders to access funds set aside in a flexible spending account or health-reimbursement arrangement by swiping their card at the provider's office or pharmacy. Funds then are deducted directly from the member's account, which eliminates the need for members to pay cash at the point of service, complete forms and await reimbursement checks. Prior to the introduction of the card, employee members had two separate cards--a stored value card and a health plan ID card. However, the company realized that implementing a combined card, using Evolution Benefits' Benny Card, would offer convenience not only to employees but also to employers and providers.

The company plans on introducing the card to members outside the company sometime this year.

Employee members also can credit pretax dollars automatically with the card. In addition, they receive e-mail notifications after a transaction is made, informing them of remaining available funds.

Providers benefit from the card because they are able to collect payment at the time of service, while employees are more inclined to participate in flexible spending accounts, which historically haven't had high penetration because the accounts are cumbersome to manage and unused funds aren't rolled over to the next plan year, said Beth Bierbower, vice president of product innovation.

Employers also save money when employees participate in such plans. "For example, for every $1,000 deposited in a tax-free FSA, employers save about $77 in payroll taxes. For every $500 contributed to an FSA by an employee in the 25% tax bracket, they save $125," said Robert E. Patricelli, chairman and chief executive officer of Evolution Benefits.

During the card's first year of use, Humana increased enrollment in its flexible spending accounts by 65%. In 2003, usage of the card grew 25% over the prior year, said Bierbower. Also during the first year, 2,600 employees used the card, making more than $1 million in transactions. During the first nine months of 2003, usage grew to more than 3,200 employees with about $1.8 million in transactions. "It's a tangible piece of product that brings people value, and they are just so accustomed to using it now," Bierbower said.

The card is protected against fraud. The system is programmed behind the scenes to allow only eligible merchant codes, set forth by MasterCard, so that cards are used only in providers' offices and hospitals. "We've even gone a step further with pharmacies in that it reaches out real-time to our pharmacy-benefits-manager system and looks for an exact match on copays to prohibit putting through other services that aren't appropriate" said Bierbower.