Most vendors lock up three months of prefunding.

Convey requires less than one month—freeing up 68%+ more working capital while still getting you live for the 2026 plan year.

Let’s talk about something that keeps Medicare Advantage executives up at night: cash flow.

You’re running a health plan in an industry where every dollar matters more than ever. McKinsey’s latest research shows Medicare Advantage is projected to be the most profitable line for payers in 2026, but here’s the catch: you’re also facing unprecedented margin pressures. Many payers are now asserting “margin over membership growth” as their primary strategy, and some are even contemplating changes that might trigger membership losses.

Meanwhile, you’re dealing with a population that’s getting more expensive to serve. According to McKinsey’s demographic analysis, beneficiaries 85 and older average more than twice the monthly medical costs of those aged 65-69. Your administrative burden is skyrocketing with complex billing procedures, prior authorization requirements, and varying plan-specific guidelines that are draining resources from patient care.

And then there’s the funding challenge nobody talks about enough: the massive cash flow impact of traditional supplemental benefits and benefit card administration.

The Hidden Cash Flow Killer

Here’s what most Medicare Advantage organizations don’t realize until it’s too late: traditional flex card vendors are quietly strangling your working capital.

The standard industry practice? Three months of prefunding.

That means if you’re projecting $4 million in annual supplemental benefits spend, you’re handing over $1 million upfront to your benefit card vendor. That’s $1 million sitting in someone else’s account, earning them interest, while you’re scrambling to optimize cash flow elsewhere.

The 2026 Deadline Reality

Here’s the urgency factor: if you want to be live and compliant for the 2026 plan year, you need to start implementation in 2025. That’s not a suggestion—it’s a regulatory reality.

CMS issued its final rule for contract year 2026, implementing significant changes to the administration of supplemental benefits. Most supplemental benefit implementations take six to 12 months when done properly.

The critical insight here is that Q2 2025 is your last realistic window for vendor selection. Once you move into Q3, you’re operating under increasing time pressure, and your negotiating position weakens significantly.

A Different Approach to Flex Card Funding

This is where Convey’s approach fundamentally differs from the industry standard. Instead of requiring three months of prefunding, Convey’s model requires less than one month upfront. The math is straightforward: if traditional vendors lock up $1 million for a $4 million annual program, Convey requires roughly $320,000. That’s 68% more working capital staying in your accounts.

Convey’s funding model delivers three core benefits:

The Member Experience Advantage

Member experience doesn’t have to suffer when you optimize cash flow. In fact, it often improves.

Convey’s platform provides real-time access to benefit funds through sophisticated benefit card technology. Members get access to more than 910,000 pre-approved, eligible products across 58,000 locations.

The product lookup and scanner app returns immediate eligibility status, eliminating declined transactions and reimbursement delays.

Making the Decision

The choice isn’t really between different supplemental benefit managers and flex card vendors. It’s between two fundamentally different approaches to cash flow management:

Your Next Steps

If you’re ready to explore how Convey’s funding model could impact your 2026 planning, you have two immediate options:

The 2026 plan year is coming whether you’re ready or not. The question is whether you’ll enter it with 68% more working capital and the financial flexibility to respond to whatever the market brings.

Contact Convey today to learn how our flex card funding model can transform your working capital position while delivering superior member experiences.