Health Savings Account Blog

The association — a national group of 39 independent insurers — opened the Utah-based bank in January to handle customers’ Health Savings Accounts. It received a Federal Savings Bank charter in February that allows the Blue Healthcare Bank to provide health care-related banking services in all 50 states.

The reason for getting involved in banking is simple — more consumers are turning to the combination of high deductible health plans and health savings accounts as a way to get affordable coverage. Operating a bank is a way to keep these customers happy and maybe increase market share.

Blue Healthcare Bank provides services, such as administering health savings accounts, to the 98 million people nationwide covered by a Blues plan.

Jim Deyling vice president for marketing and sales for Blue Cross Blue Shield of S.C., said they have tens of thousands of current customers who could potentially take part in the new bank.

Deyling would not disclose exactly how many high-deductible plan members the insurer has and not every member opts to start a health savings account.

But these accounts are gaining in popularity because they offer a tax-free way to save money for health needs not covered by high deductible health plans. Such plans typically come with cheaper premiums than traditional health coverage.

By 2010, the Blue Cross and Blue Shield Association predicts between 40 million and 45 million people nationwide will opt for the high deductible coverage making them eligible to open such savings accounts.

Currently, the association estimates about 57 percent of its customers who were eligible to open health savings accounts, did so in 2006. In the coming years, the association expects that number to grow.

“As this trend continues, consumers will be in greater need of reliable financial services,” said a statement released by Scott Serota, chief executive of the association. “The Blue Healthcare Bank responds by providing consumers with access to a trusted and secure financial resource to help them efficiently manage their health care dollars.”

And Serota needs only look at the recent experience of competitor United Healthcare.

Its parent, Unitedhealth Group Co., started its own Salt Lake City-based bank, Exante, to handle the health savings accounts of its high deductible insurance customers.

Exante started handling accounts in July 2003. By December 31, 2006, the bank’s deposits had skyrocketed to $296 million,from the $47 million reported a year earlier.

Having the direct relationship with a bank, Deyling said, will make it easier for Blue Cross Blue Shield to sign up customers for health savings accounts.

Deyling said there is little doubt these accounts are gaining in popularity among customers trying to find a way to provide some level of health insurance for their employees.

For customers, Deyling said another benefit of the Blue Healthcare Bank will come when paying for doctor visits.

“Instead using a regular bank debit card, you can use the Blue Healthcare Bank debit card,” Deyling said.

Find information on Blue Cross Blue Shield plans in your state:

- Blue Cross Blue Shield of Arizona
- Blue Cross of California
- Blue Shield of California
- Blue Cross Blue Shield of Colorado
- Blue Cross Blue Shield of Illinois
- Blue Cross Blue Shield of Nevada
- Blue Cross Blue Shield of Tennessee
- Blue Cross Blue Shield of Texas
- Blue Cross Blue Shield of Illinous
- Blue Cross Blue Shield of Louisiana
- Blue Cross Blue Shield of Missouri
- Blue Cross Blue Shield of Ohio
- Blue Cross Blue Shield of Virginia
- Blue Cross Blue Shield of Wisconsin

You can find out more about Blue Healthcare Bank on their website at http://www.bluehealthcarebank.com