Canopy Financial has acquired the CareGain healthcare banking subsidiary of Fiserv in a deal that will shift more than one million consumer-directed healthcare accounts and the program management for over 50 health plan providers and major banks to the San Francisco-based Canopy. Terms of the deal were undisclosed.
The new entity will include a platform integration between CareGain’s Asset Management Platform (CAMP) with Canopy’s HealthDirect system for electronic payments, administration and account management. The new platform, which will be available during the fourth quarter of 2008, will retain the HealthDirect name for handling the cornucopia of flexible spending, reimbursement and healthcare savings accounts.
“The popularity and growth of consumer-directed healthcare accounts is creating a unique opportunity for both health plans and banks,” says Celent senior analyst Red Gillen, in a statement. “A truly integrated, multi-custodian FSA, HRA, and HSA administration platform with embedded payment capabilities unlocks a great deal of potential for those in the CDH ecosystem.”