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Great-West Healthcare First Employee Benefit Provider to Offer Payroll Deduction Credit Card Solution

Posted on: Tuesday, 18 October 2005, 12:00 CDT

New CLEAR Card Helps Members Budget out-of-Pocket Health Care Expenses and Supports Growth of Consumer-Driven Health Plans

Great-West Healthcare, a national employee benefits provider, today announced a pilot program with E-Duction, a leading provider of payroll deduction solutions, to issue the CLEAR Card, a payroll deduction credit card for employers with consumer-driven or other high-deductible health care plans. The CLEAR Card, which is processed like any other credit, debit or check card, is a versatile financial tool that helps members pay out-of-pocket health care expenses. The pilot program will be rolled out in October to various clients nationwide.

"Members enrolled in consumer-driven health care plans typically pay lower premiums, but may pay higher, variable out-of-pocket expenses, which can create issues for many who might have limited resources," said Cindy Donohoe, vice president of marketing and product development at Great-West Healthcare. "Too often, if consumers cannot make payments, they shift the outstanding costs to providers, which creates bad debt for the providers. The CLEAR Card will help the industry avoid that scenario."

According to a recent national Great-West Healthcare consumer survey, 39 percent of respondents said they have no money set aside now for health care costs, and an additional 17 percent cannot cover a $1,000 deductible. These statistics, combined with the fact that consumer savings is at a 70-year low, make CLEAR Card's introduction even timelier.

Members enroll in the CLEAR Card program through a dedicated Web site or a toll-free number and make purchases on the card anywhere that MasterCard is accepted (33 million locations worldwide). The employee then pays for purchases in equal installments via automatic payroll deduction. For medical expenses that are greater than $199, CLEAR Card members receive interest free financing for six months. Medical expenses below this threshold and other non-medical expenses are paid interest-free via automatic payroll deduction over two months. The CLEAR Card provides a credit line of up to 4 percent of the member's annual base salary and can be used with any Great-West Healthcare consumer-driven health care plan.

No advance contributions are required. There are no financial penalties if the benefit is not used, and there are no late fees since the payments are deducted automatically from the member's paycheck. Members can view their statements online. To administer the program, companies only need an automated payroll system. No additional software is required on the part of the providers or companies enrolling in this benefit.

Paul Chicos, CEO of E-Duction and a veteran health and welfare benefits strategist, applauded Great-West Healthcare's recognition of the need to balance the cost-containment needs of its employer clients and the financial means of its members. Chicos explained, "Great-West Healthcare is a leader in engaging members in their health care consumption, all the while promoting wellness and providing members with tools to manage their out-of-pocket expenses. The CLEAR Card program does just that, plus, members and network providers alike benefit from the timely payment of out-of-pocket medical bills."

About Great-West Healthcare

Great-West Healthcare, a division of Great-West Life & Annuity Insurance Company, is a national employee benefits provider with expertise in self-funding and health care management solutions. Nationally, the division operates a health care network that includes more than 4,200 hospitals and 530,000 providers and provides health care coverage to nearly 2 million people. Visit www.greatwesthealthcare.com for more information.

Great-West Life & Annuity Insurance Company, headquartered in metro-Denver, serves its customers through a full range of health care plans, life and disability insurance, annuities, and retirement savings products and services. It is an indirect, wholly owned subsidiary of Great-West Lifeco Inc. and a member of the Power Financial Corporation group of companies. Great-West Life & Annuity Insurance Company is not licensed to do business in New York. Products are sold in New York by its subsidiary First Great-West Life & Annuity Insurance Company, White Plains, N.Y.

About E-Duction

E-Duction, Inc. was launched to offer employers and employees the benefits of payroll deduction through guaranteed-issue programs. With its CLEAR Card program, E-Duction grants employees the opportunity to pay for goods and services on-the-spot, and repay these costs over time as payments are deducted automatically from their salary over predetermined pay periods. E-Duction's Health Expense Account ("HXA") offers employees and employers a financing tool that allows each to better manage escalating healthcare costs.

Source: Business Wire

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