Chatham, N.J.-based DriveWealth, a provider of digital trading and investing technology, has partnered with Utah-based insurance provider MotivHealth to offer a technology-driven “frictionless” health savings account (HSA).

According to DriveWealth, the partnership makes possible the first HSA that will allow account holders to view health insurance claims, manage their account and make trades all from a single interface.

“The tax-advantaged HSA can be a critical tool in helping users combat ever-increasing health care and retirement costs,” said Bob Cortright, DriveWealth Founder and CEO, in comments released on Tuesday. “We’re proud to partner with MotivHealth to provide their clients with the flexibility they need to save for their future via a seamless, digital-friendly experience.”

The new HSA solution is powered by DriveHSA, DriveWealth’s division focused on the HAS vertical, and uses the company’s Fracker technology that allows real-tiem fractional share investing.

DriveWealth sees the new HSA as answering a core problem: In an account where the annual maximum contribution is $3,500 – which comes out to less than $300 a month – it can be difficult and time consuming to build a truly diversified portfolio. Fractional shares allow HSA holders to achieve a more optimal diversification without holding a large amount of assets in their accounts.

The MotivHealth partnership is also unusual as it creates an HSA offered by technology firms, whereas most insurance companies have offered HSA accounts via a third-party bank using a separate experience for customers. Users can manage HSA and insurance all from one platform, allowing them to open the account, make contributions and maximize unspent contributions through investments.

As an insurer, MotivHealth is notable for overtly connecting physical health with financial health. The company’s Steps Programs provides incentives for users to stay in shape, offering them $1 for every 8,000 steps a day they walk, for up to 20 days per month, which will be contributed into their HSA.

“HSAs are a great way to engage people to help lower overall healthcare costs while preparing for future medical expenses,” said Dave Hall, founder and CEO of MotivHealth, in comments released on Tuesday. “We have built our own, proprietary API based HSA platform; the missing piece was an API based investment solution that would complete the seamless user experience that we feel is needed to drive better engagement. DriveWealth was the answer and we’re proud of this partnership that helps us stand apart as the only known insurance company to offer a product like this.”
 

To read more stories , click here