When it comes to group benefits, we obviously search for the most well-rounded, flexible plan that will give us exactly what we need. Often, this turns into a plan that is quite inflated with “perks” to create perceived value.

One of these so-called perks is a benefits card.

This invention was supposed to be a value-add that makes the whole claims process more convenient.

Is it really free added value for Plan Members? Well, no (we wouldn’t be writing this blog if it was the best thing since sliced bread). So, let’s get into the ins and outs of benefits cards and why we think they’re a waste of space!

The art of perception

If you’ve read our blog "What’s the real cost of your massage?" you probably know where this is going. The primary selling point of a benefits card is its convenience - the idea that you can simply present your card at the point of sale and boom, you’re good to go.

This selling point is just the perception of convenience. A benefits card can be quite limiting depending on your insurance company’s partnered providers. Most of us have providers we’ve gone to for years and have grown to trust. If they don’t direct bill your insurer using your benefits card, that defeats the entire purpose of this “added convenience”.

There’s an extra cost – who's paying it?

The biggest problem with benefits cards is the notion that they’re free and by choosing a provider who offers a benefits card you’re adding value without adding cost.

Sadly, nothing in life is free. There are costs associated with creating a seemingly simple direct pay experience such as:

• Internal costs to manage cards
• Integration with the software healthcare providers use to bill
• Network costs so systems can talk to each other
• Development costs for the rules-based systems that adjudicate expenses at the point of sale

For each of these requirements, there’s another company getting a slice of the pie. After all, everyone needs to get paid for the work they do.

Where it gets tricky, is that these fees won’t come as individual charges – they’ll be baked into your premium (your cost for the provider to pay claims) so the only way you’d know about them is by reading your renewal report.

(We really encourage you to read our blog on how to do that so you can stay informed)

A higher premium often comes with the choice to make employees pay into their benefits, known as “co-paying” or “skin in the game”. It’s a practice that helps no one.

Is the added cost really worth the perceived convenience?

The solution isn’t complicated

Convenience is great, we love it. We love it so much that we’re constantly working on ways to make our online platform even more convenient.

You see, swiping a card may be easy, but it comes with so many pitfalls. The alternative is to go with a provider who makes the claims process simple and effortless.

The claims process for our Health Spending Accounts and Enhanced Health Blends can be done anywhere in the world, at any time right on your phone! With a couple of clicks, and an upload or two of receipts you’ll be reimbursed within a few business days.

A bonus? If a Plan Member pays for their expense using a credit card, they can earn points or cash back. Their reimbursement will be in their account when it’s time to pay the credit card bill, so there’s no fear of carrying it as a balance and paying interest charges.

Don’t swipe past this part!

If you have any questions about this blog or benefits give us a shout! Alternatively, if you’re a super fan of the benefits card and want to discuss it, we’re all for that too!

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