HealthEquity, Inc. (NASDAQ:HQY) Q4 2023 Earnings Call Transcript

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Who are some of our great partners, hospitals and health plans? And it’s great to hear that there’s actually some bipartisan kind of girth behind getting consumers the right information they need to make better choices. Now, whether that plays out in the market where consumers just now have the ability to go get a lower cost of insulin because, the price drops by 75% because the new entrance, which happens to be one of our partners comes out with new insulin, that’s wonderful. Or if it’s it manifests itself a little bit differently that Jon was alluding to, which is, that there has been some progress as, getting consumers use your Jon’s word certainty on cost, for example, under the Affordable Care Act. Consumers, if they’re diagnosed with high cholesterol, they can get statins for free, right, with no cost share and so it’s certainty.

They’re helping pay for it. And obviously the health plans can negotiate very price on that. I think that there’s other opportunities out there and so as legislators have looked at it and said, how can we help people be more healthy? Is there, is there a way to help have better drug prices? Can we far away behind some of these initiatives? It completely benefits us. To your point, there may be lower upfront spend, but we’ve always said we’d much rather have people have more money in their health savings accounts longer, and then they can spend it next year. And, at some point they start getting older and the healthcare costs start to go up. The average age of cancer in this country is in the sixties. Those are going to be times when they really need to spend this money when they have those types of events.

And, and we’re going to be there for them and so, I think you will always find us completely comforted by expanding regulations to be able to do things like better transparency and lower cost drugs and things like that. So we’re going to keep doing that and we’re going to keep innovating to get people the right information at the right time so they can make the right choices with the way that they both save and invest and spend their healthcare dollars. And, let me say one more thing for those who are wondering like, what the hell this answer and question has to do with our revenue streams, there’re, in addition to the sort of more obvious answer that is, it makes the health plans that people choose and then choose to bring to us, bring dollars to us more appealing and can IFL there are also some more direct opportunities here.

Our clients at the employer level, our health plans and our partners at the broker level are absolutely, this whole discussion around bringing, it’s not — it’s transparency, but it’s also simplicity to some of the more routine pharma items to things like maternity to mental health where we don’t want people not using these services, not because they can’t afford them because they don’t understand what they cost and they’re scared. We don’t want to be in that circumstance. And they’re easy things that are relative to rocket science. There are easy things that can be done in plan design and that, that helping employers do those things and helping clients do those things and helping our partners arrange those things. There are interesting top line opportunities for us that right now we’re in the exploratory phase and seeing where we have the right to win and where, where we can partner with others and whatnot, but, this is an area of, of real opportunity for us.

Operator: The next question is from Mark Marcon with Baird. Please go ahead.

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