Blue Healthcare Bank Receives Federal Regulatory Approval

"More and more Americans are taking greater control of their healthcare choices by enrolling in consumer-directed health plans (CDHPs), such as health savings accounts (HSAs). As this trend continues, consumers will be in greater need of reliable financial services," said Scott P. Serota, BCBSA president and CEO. "The Blue Healthcare Bank responds by providing consumers with access to a trusted and secure financial resource to help them efficiently manage their healthcare dollars."

The bank will allow consumers to manage and direct their healthcare spending by paying for qualified medical expenses via a debit card linked to multiple personal accounts such as health savings accounts (HSAs), flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs). Participating Blue Cross and Blue Shield companies can aggregate a member's claims and personal health savings information into a single integrated customer service report.

The Blue Healthcare Bank will offer consumers:

• Continuity -- the bank can be integrated with the account holder's health plan;
• Convenience -- an array of services are provided, including on-line banking, banking-by-phone, debit cards, checks, investment options and statements to help customers manage their accounts;
• Stability -- the bank is affiliated with a health plan that consumers trust; and,
• Expertise -- the bank employees specialize in healthcare-related financial services.

The first four Blue Cross and Blue Shield companies to work with the bank are: Arkansas Blue Cross and Blue Shield, Blue Cross of Idaho, Blue Cross and Blue Shield of Michigan, and Blue Cross and Blue Shield of South Carolina. An additional 12 to 15 BCBS companies will come on line later this year.

The market for healthcare banking is strong, particularly in light of the continued growth and popularity of HSAs. According to BCBSA research, in 2006, 57 percent of HSA-eligible enrollees opened HSA accounts. The U.S. Department of Treasury estimates that 40-45 million Americans will be enrolled in HSA- eligible insurance plans by 2010.