How to Select a Consumer-Directed Healthcare Vendor
Report Summary
How to Select a Consumer-Directed Healthcare Vendor
Banks and health plans must carefully vet vendors of consumer-directed healthcare services to ensure the vendors meet their unique needs.
Boston, MA, August 31, 2009 – A new report from Aite Group, LLC provides a comprehensive set of guidelines on what to look for in a consumer-directed healthcare (CDH) vendor. Intended as a tool to help buyers of CDH services, such as banks and health plans, select a vendor best suited to their needs, the report also provides a market overview of CDH service consumers, as well as current CDH vendors and their solutions.
The consumer-directed healthcare market, which includes health savings accounts (HSAs), health reimbursement arrangements (HRAs), and flexible spending accounts (FSAs), has grown tremendously in recent years, and promises to continue to do so. That recent growth, coupled with the rapid increase in individual and employer adoption of CDH accounts, has created a number of opportunities for banks and health plans. On the other hand, it has also raised the issue of whether banks, health plans and vendors can support the CDH offering for their customers, and has increased their reliance on vendors offering specialty products in this arena. While today's CDH vendor solutions are more comprehensive and well-adjusted to market changes than earlier iterations, there remains a lack of industry-level guidelines or best practices to assist banks and health plans in selecting the best technology for their needs.
"Selecting a CDH vendor requires a commitment of time and effort, but should not be rushed, as the wrong vendor could derail the offering of a bank or health plan," says Kunal Pandya, senior analyst with Aite Group and author of this report. "Aite Group believes that banks and health plans will find the vetting process much simpler and more efficient by having a detailed plan in place, along with knowledge of what they require. With proper vendor evaluation, a robust and market-ready CDH offering is within easy reach."
This 26-page Impact Note contains six figures. Clients of Aite Group's Health Insurance services can download the report.