With the launch of the MasterCard Dual Value Health Card, Medagate enables its cardholders to redeem targeted offers and incentives at the point of sale.
The announcement from Medagate, a subsidiary of InComm Holdings Inc., enables employers and health plans to couple a restricted-spend purse with a member/employee healthcare funding purse.
"Dual Value Health Cardholders will benefit from having dedicated funds to spend on healthcare items while also receiving discounts at the POS for targeted spending and rewards," says Brett Adams, U.S. product leader at MasterCard, in a Jan. 14 press release.
The Dual Value Health Card can act as a tax-deferred savings option, including a Health Reimbursement Arrangement (HRA), Flexible Spending Account (FSA) or Health Savings Account (HSA). Benefits administrators can also use the closed-loop network to assign money for general purchases, plus designate spending for specific health needs such as flu shots, smoking cessation programs or prenatal vitamins.
Non-approved items, such as alcohol and tobacco, can be restricted with the card’s tracking. The card can be used to fund purchases of specific products, such as allergy medication at the start of spring.
"We believe the Dual Value Health Card will play an important role in the future of wellness initiatives while driving additional foot traffic to our retail partners' store locations," says Brooks Smith, president and CEO of InComm, in the release.
InComm and Medagate partnered in 2010 to provide Medicare users and participating health-plan members a payment method for specific over-the-counter items with a reloadable prepaid card instead of paying out of pocket or being reimbursed later.
Since the partnership began, Medagate has added more than 35,000 retailer outlets, including CVS, Walgreen Co. and Rite-Aid Corp.
InComm acquired Medagate in February of 2012.
"The drive toward rewarding healthy behavior will be accommodated by a new generation of customizable payment tools linked to familiar debit and prepaid cards that provide instant rewards and discounts at the point of sale," says Devin Wade, president of Medagate, in the release. "Our experience in Medicare and Medicaid markets has shown that the availability of a targeted benefit can have a measurable impact on health behavior."