May 10, 2021 at 05:57PM

Voya Financial Inc. will purchase the third-party health savings and spending accounts administrator Benefit Strategies, Voya announced in a Monday (May 10) press release.

Headquartered in New Hampshire, Benefit Strategies offers administrative services that include COBRA, direct billing, health savings accounts and health reimbursement arrangements to more than 3,400 employers — and close to 370,000 people — around the country. Terms of the deal were not disclosed.

“We are very excited about this transaction as it supports Voya’s workplace growth strategy and will accelerate our expansion in the health savings and spending accounts market,” said Rob Grubka, CEO of Health Solutions for Voya Financial.

He added that Voya could see significant growth in the health savings and spending accounts business, a rapidly growing market. Grubka noted that assets in health savings accounts increased 25 percent last year compared to 2019, while the number of new HSAs rose 6 percent, bringing the number of such accounts to nearly 30 million in the U.S.

Voya launched its health savings/spending portfolio in 2019 and expanded its offerings earlier this year to include health reimbursement arrangements and COBRA administration.

Aside from boosting Voya’s health savings and spending accounts business, the deal will let the company “leverage its expertise and capabilities in its Investment Management business, which currently manages invested assets in Voya’s health savings accounts,” Voya said in the news release.

The purchase will become final in the third quarter of this year, pending standard closing conditions. Roughly 150 Benefit Strategies employees, including Founder and Chief Executive Paul Smith, will join Voya once the sale closes. Smith praised Voya’s “customer-centric focus” in the joint news release.

“This customer-centric approach has been tremendously valuable in helping Benefit Strategies stand apart, and we are looking forward to continuing to partner with brokers and our clients.”

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Voya Expands Its Health Business With Benefit Strategies Purchase …

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