Canopy Financial is on a roll. Two years after introducing its Web-based financial processing service HealthDirect, 12 of the 25 top banks and healthcare plans in the U.S. use it to administer more than a million health savings and flexible spending accounts. Gross revenues have increased by more than 500 percent year-over-year, and earnings more than tripled. In October, privately held Canopy acquired CareGain Inc., a business unit of Fiserv Health, making Canopy "the dominant force" in the healthcare banking and related products industry, according to Canopy's CEO Vik Kashyap.

The road ahead looks just as promising as more employers, responding to ever-increasing health premiums, steer employees to high-deductible insurance plans attached to consumer-directed HSA investment vehicles. Celent estimates that there will be three million HSAs by the end of 2008, with growth around 50 percent a year to more than 12 million accounts by 2012.

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