Aetna snaps up HSA management giant

Aetna continued its spending spree with an announcement in July that it will buy the country's largest health savings account administrator, PayFlex, for $202 million.

PayFlex, based in Omaha, Neb., manages accounts for about 1 million enrollees. It also runs wellness programs and a range of account-based employee benefits, including transit reimbursement accounts, dependent care accounts, COBRA benefits and leave of absence benefits for employers.

The purchase will give Aetna a firm foothold in the HSA business. According to a survey released in June by insurer trade group America's Health Insurance Plans, 11.4 million Americans are enrolled in high-deductible health plans paired with an HSA that helps cover out-of-pocket health care costs. The plans are a popular way for employers to control costs and drive workers to pay attention to the cost of care because they must pay out of pocket for at least the first $1,000 of medical expenses.

By combining its own consumer account business with PayFlex, Aetna will hold about 2 million consumer-funded spending accounts, according to the company.

The acquisition announcement said Aetna planned to retain PayFlex's management team and more than 400 employees.

"The combination of these businesses will allow PayFlex to continue to sell its products on a stand-alone basis as well as on an integrated basis with Aetna products," the news release said. "Importantly, the combined business will be able to offer a comprehensive solution on a single platform."

Aetna has made several acquisitions in recent months. It completed its purchase of Prodigy Health Group, a third-party administrator of self-insured health plans, for $600 million in June. Also in June, it bought the Medicare supplement business Genworth Financial for $290 million. In January, it completed its acquisition of health IT company Medicity for $500 million.

Like the PayFlex acquisition, all those purchases were made with what Aetna called "available resources."