• Modernizing Payments at Scale: With $15 billion in annual transactions, Alegeus sought to reimagine its payment operations by implementing a unified platform with more advanced tracking and reconciliation capabilities to support its growing business.
• Efficiency Without Compromise: By automating core processes, starting with its COBRA business line, Alegeus cut reconciliation time by nearly 90%—from one day a week to one hour a week, even as volumes tripled. This operational lift came with tight security, access control, and oversight, supporting scale while reducing risk.
• Laying the Foundation for AI-Powered Innovation: Alegeus isn’t stopping at automation. As a leader in healthcare payments, it is also implementing Modern Treasury AI to enhance data analysis, uncover actionable insights, and proactively detect anomalies. With strong governance in place, Alegeus is building a responsible, AI-driven foundation that reduces manual effort, delivers real-time visibility, and enables teams to focus on high-impact strategic work.

Alegeus, which manages $15 billion in annual transactions across millions of consumers and hundreds of partners, set out to transform its payment infrastructure to support the evolving demands of healthcare payments and power its growth. The company sought a solution to streamline how funds move and reconcile across its many systems, with real-time visibility, automation, and transparency. As part of this effort, the company identified opportunities to replace manual, monthly reconciliation processes and siloed bank data with a unified system that reconciles in real-time. Together, Alegeus and Modern Treasury have built a platform that enables faster decision-making, tighter controls, and increased confidence across operations—driven by robust ledgering and real-time reconciliation capabilities.

"More than ROI, this was a bigger justification for payments transformation," noted Bill Reboul, Head of Banking and Payments and Chief Product Officer at Alegeus. "Without ledgers, reconciliation, or a single point of entry and egress for payments, our legacy payment system couldn't answer the question, 'How much money do you have in this person's account?"

After evaluating potential solutions, Alegeus selected Modern Treasury's comprehensive platform for payment operations, drawn to the innovation of its platform and real-time infrastructure. The decision centered on the platform's ability to match system-of-record data with actual bank transactions and support new payment rails, like FedNow and RTP.

By partnering with Modern Treasury to automate reconciliation and achieve real-time fund visibility, Alegeus built a foundation to mitigate risks, like leakage, while delivering innovative new customer experiences with instant payment rails. These capabilities aligned perfectly with Alegeus' long-term vision for payments transformation.

"To successfully drive a payments transformation, you need to know your existing data and processes before implementing any new solution. Don’t just automate bad processes—take the time to clean up and transform them first. This way, you’ll build a strong foundation that ensures long-term value and avoids creating new issues down the road," advised Reboul.

Alegeus initiated a phased deployment of Modern Treasury, beginning with their COBRA business line and establishing plans to expand across all business segments, including HSAs and Notional benefits. Early success was based on a comprehensive understanding of existing data and processes. Before starting the implementation, the Alegeus team mapped out data sources, reconciliation processes, and bank interactions to transform, versus automate, the existing state. By doing this work first, Alegeus set a new standard for how it plans to implement solutions with partners.

According to Matt Reichardt, Payment Operations Manager, "Before using Modern Treasury, our COBRA reconciliation process was incredibly manual, involving downloading bank activity and payment data and reconciling everything in Excel. Modern Treasury automated the payment ingestion and reconciliation, cutting down work hours to just handling a few exceptions each week. This has saved us a lot of time and made the process much more efficient.”

The Modern Treasury implementation enabled Alegeus to increase efficiencies, achieve real-time visibility, and reduce risk as they scaled their business.

"The goal is not to reduce headcount, but to address risks and scale efficiently through automation," Reboul noted. This philosophy guided the implementation approach, focusing on value creation rather than cost reduction as the primary metric of success.

The time saved was significant: Alegeus cut its reconciliation time by nearly 90%. Processes requiring a full day each week were reduced to one hour per week, even as the company’s. COBRA volumes nearly tripled. They managed this scale successfully, without having to add headcount.

By leveraging AI to automatically match records with bank transactions, the Modern Treasury platform enabled a shift from monthly, aggregate-level reconciliation to daily, individual balance and transaction reviews. With granular, real-time visibility, the team could reduce time spent on manual data compilation and dedicate more energy to higher-value work like exception management and strategic analysis, amplifying the impact of their efforts with greater efficiency. By tracking money movement and balances in real-time, teams can detect issues earlier, reducing risk and costs, and ultimately saving time. Alegeus is not the only one that benefits from transforming its payment systems; partners also benefit from better visibility, reporting, and insights to manage their funds effectively.

"Modern Treasury is the essential glue in our tech stack, ensuring that data from our record-keeping, card processing, and investment platforms aligns with actual bank transactions," explained Reboul. This connectivity between systems became the foundation for broader operational improvements throughout the organization.

By acting as an interface between Alegeus and their bank partners, Modern Treasury simplified managing accounts and access controls, eliminating the need to log into 15 bank portals by providing a single source of truth for all accounts. Alegeus’ team now sees every account via a single dashboard. Built-in controls mean that when team members transition out of the organization, their access is immediately removed from all financial systems without updating each bank account. This integration of security and operational efficiency exemplifies the comprehensive benefits of modernizing payment infrastructure.

After a successful first phase of the partnership, Alegeus is breaking new ground as an early adopter of Modern Treasury AI, positioning itself at the forefront of AI-powered payments.

"Modern Treasury AI is going to transform our daily work and save the team a lot of time. We're excited to find patterns in our accounts, set up smarter rules, automate tasks, and easily share insights across departments. Using AI to accelerate data analysis and enhance processes will allow us to focus on more strategic work," explains Elizabeth Dobbs, VP of Payment Operations.

Alegeus is in the early stages of implementation but has already created a clear plan to adopt AI to increase efficiency, building on the success of its payments transformation. The vision includes using AI to identify reconciliation exceptions more rapidly, establish proactive alerts for potential overdrafts, and ultimately create a more intelligent payment ecosystem that can adapt to emerging trends.

Recognizing both the transformative potential and the responsibility that comes with AI, Alegeus has established rigorous governance frameworks to guide the implementation. Their approach includes a dedicated AI committee, controlled deployment with experienced professionals, and human oversight of AI-generated insights.

Dobbs notes, "We're starting with high-impact, low-risk processes to build trust and ensure everything is secure as we scale AI use across our operations. With Modern Treasury, we know our data is safe and separate, making it easier to confidently move forward with AI."

By strategically implementing AI capabilities while maintaining strong governance controls, Alegeus sets the standard for how healthcare payment platforms can responsibly harness artificial intelligence to enhance operational efficiency and create value for partners and members alike.

Alegeus views Modern Treasury as a critical innovation partner, as the company looks to expand its work across all lines of business, laying the foundation for real-time payment capabilities. Through robust ledgering and AI-powered reconciliation capabilities, Alegeus has strengthened its operational controls to reduce risk across the organization. This foundation will make it easier for the team to integrate instant payment rails, such as FedNow and RTP, to support new customer experiences with sufficient guardrails.

"FedNow and RTP are part of our longer-term vision, but before we dive into real-time transactions, we need to have solid ledgering and reconciliation in place to manage risk effectively," concluded Reboul. This measured approach ensures that innovation advances in parallel with operational controls.

By establishing a comprehensive foundation for payment operations, Alegeus has positioned itself to continue innovation at scale while maintaining exceptional partner and customer service levels. The transformation represents not just a technology upgrade, but a fundamental reimagining of financial operations for healthcare payments. One that sets a new operational standard for the industry.

Dobbs describes the partnership between Alegeus and Modern Treasury, saying, “At first, we thought Modern Treasury would just help with reconciliation and month-end reporting, but we've realized it can do much more. It’s becoming a central hub for payments: It’s giving us valuable data and insights that can be self-served across the organization and making our processes more efficient."