Blues sees potential in HSA money, opens its own bank

The BlueCross BlueShield Assn. is taking affiliates into the health care financing market, but WellPoint wants its own bank.

By Jonathan G. Bethely, AMNews staff. March 5, 2007.

In a move designed to capitalize on the emerging health savings account market, the BlueCross BlueShield Assn. announced the launch of its Blue Healthcare Bank.

Scott Serota, president and chief executive officer of the BlueCross BlueShield Assn., said -- during a Feb. 13 conference call -- that within three years the bank expects to have HSA deposits in excess of $500 million. Serota said it hopes to capitalize on the U.S. Dept. of Treasury's estimate that 40 million to 45 million people will be enrolled in HSA-eligible health plans by 2010.

Based in Sandy, Utah, a suburb of Salt Lake City, Blue Healthcare Bank is offering health savings accounts, flexible spending accounts, debit cards and other financial health care products to members of Arkansas BlueCross BlueShield, BlueCross of Idaho, Blue Cross and Blue Shield of Michigan, and BlueCross BlueShield of South Carolina. Officials said another 12 to 15 companies will join the bank later this year.

Serota said the mere presence of a bank does not guarantee real-time claims adjudication will be possible in a physician's office, but the debit card feature could make it easier for physicians to collect the patient's co-pays.

"One of the rationales for this was to provide support to our provider partners," Serota said. "They are faced with a much higher collection burden. As a result of the linkage between the health plan and the bank, a member will be able to provide a [debit] card. That card will allow the physician to be assured that he's being paid adequately."