It’s no secret that the changing health care landscape is pressuring consumers to take more control over their own medical care and expenses.
Problem is, experts say, there is a lack of self-service tools and options available to consumers and employers, making it difficult for them to navigate and understand complex issues or products like health savings accounts, which more people are relying on to pay their medical bills.
“This confusion is costing consumers much time, energy and money,” said Chris Byrd, president of electronic payment software provider Evolution1 in Simsbury.
That is where Byrd’s firm sees a major business opportunity. Evolution1 — formed in 2011 by the merger of Avon’s Evolution Benefits Inc. and Minnesota’s Lighthouse 1 LLC — has found a sweet spot helping simplify the health care reimbursement and payment processes for both employers and consumers.
The company’s cloud-based electronic payment software helps firms with the administration of flexible spending (FSAs), health savings (HSAs) and health reimbursement (HRAs) accounts, as well as wellness plans.
It’s a lucrative market to be in: In January, 15.5 million people were enrolled in health savings account plans, up 15 percent from a year earlier, according to the trade group America’s Health Insurance Plans. Evoultion1 has tapped into that growing market, now boasting a nationwide client base of more than 75,000 employer groups and 9 million consumers.
“The underlying premise driving consumer-directed health care today is that when you give consumers greater control over their healthcare expenses and greater responsibility for their healthcare choices, they will make better and more informed use of their resources,” Byrd said. “That should mean reduced costs for employers and increased employee satisfaction. But for this to be true, employers and consumers alike need a solution that removes much of the burden of administrative activities.”
Evolution1’s product lineup aims to simplify the user experience and automate workflow, Byrd said, helping businesses lower overhead costs and helping consumers more easily manage their health care accounts.
The firm’s 1Cloud software, for example, is a healthcare accounts administration platform delivered completely online. Evioltuion1’s 1Direct software administers consumer-driven healthcare plans, while its 1Mobile product enables consumers to view medical care account balances, submit healthcare account claims, and capture and send receipts anytime on an iPhone, Android or tablet device.
Finally, the company’s 1Pay suite of products allows consumers to access healthcare account funds with use of a prepaid benefits debit card.
So far their business model, which derives most of its revenues from recurring monthly account and transaction fees generated from its debit cards, appears to be working.
With 275 employees, Evolution1 is growing.
The firm, which also has offices in North Dakota, Minnesota and Missouri, was named to Connecticut Technology Council and Marcum LLP’s fastest-growing tech company’s list in 2013. In August, Inc. Magazine identified Evolution1 as one of the 5,000 fastest growing firms in the country.
Byrd said the growth is largely a result of the value and savings customers get from their products. He said the company — together with its partner, which include 500 health plans, third-party administrators, financial institutions, and software providers across the country — saved clients $2 billion last year in healthcare costs and tax savings.
He said they also helped clients save more than $80 million in annual operating costs through claim and payments automation.
John Lahtinen is a freelance writer/editor in Farmington. Reach him at lahts@yahoo.com.
