Blue Cross Plans to Launch S.L-Based Bank
Posted on: Monday, 5 December 2005, 15:00 CST
By Nathaniel Hernandez Associated Press
CHICAGO -- The Blue Cross and Blue Shield Association wants to launch a Salt Lake-based bank that will administer its consumer- directed health plans, a responsibility currently shared by third- party financial institutions.
The association announced today that its board of directors has approved development of the Blue Healthcare Bank. The aim is to simplify the administration of health savings accounts and other similar plans offered by Blue Cross insurers throughout the United States, said Scott Serota, president and chief executive officer of the association.
The bank would give those enrolled in Blue Cross plans a familiar, centralized financial institution to monitor and access their accounts, Serota said. Creation of the bank is subject to regulatory approval.
"By being closely aligned and integrated with your benefits, we will be able to ensure that your account is paid properly and that your deductible will be applied correctly," he added.
Health savings accounts (HSAs) can be set up by consumers who have high-deductible insurance plans. Both workers and their employers can deposit money into the accounts, which grow tax free and can be used to pay for medical expenses. Unspent money in the account accumulates and can be invested through the HSAs administrator.
Currently, the HSAs offered by Blue Cross insurers are handled by third-party banks.
Serota said the banking industry should not be concerned about encroachment because the Blue Healthcare Bank would only offer financial services related to the management of the health plans.
"You're not going to be able to have checking accounts," he said. "There is plenty of room for us to work in concert -- instead of in competition -- with those banks."
The American Bankers Association could not immediately be reached for comment.
The move into the financial services arena could prove to be a lucrative one for Blue Cross.
By 2010, HSA accounts could be holding as much as $75 billion in assets, according to a report by DiamondCluster International Inc., a management consulting firm. As a result, financial institutions could stand to collect up to $3.5 billion from asset management and account fees, according to the report.
UnitedHealth Group Inc. has already launched its own financial institution for the management of consumer directed health plans, the Salt Lake-based Exante Bank.
About 1 million people have enrolled in HSAs and other similar plans since 2003, said association spokesman Chris Hamrick.
Source: Deseret News (Salt Lake City)
Related Articles
- Blue Cross and Blue Shield of Texas Collaborates With Five Blue Plans to Increase Transparency, Expand Access to Health Care Cost Information
- The Bank of New York Mellon's Pershing Unit Expands Separately Managed Account Solutions for Independent Registered Investment Advisors and Advisors in Transition
- The Standard Makes the Case for a Managed Account Solution
- Accountable Health Care IPA Selects EZ-CAP(R)
- Silverlink Strengthens Health and Disease Management Programs With the Industry's Most Automated Call Solutions and Extensive Services
- Per-Se Technologies, Prime Therapeutics Announce Plans to Implement Electronic Health and Formulary Management Services; Access to Data Will Help Reduce Drug Interaction Errors, Support Medication Plan Coverage
- HSA Bank Continues to Lead HSA Industry
- Keystone Mercy Health Plan Selects ParadigmHealth for Neonatal Intensive Care Management Services
- IFAC Guidance on Environmental Management Accounting
- WorkWise Software Announces OEM Partnership with Transition/1 Management Accounting Systems, Inc.
 |
 |
User Comments (0)
RSS Feeds