Tuesday, December 06, 2005

BCBS Opens a Bank

From various sources, including yahoo:

BCBS said this week that its board of directors approved the development of 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 U.S.

Health Savings Accounts (HSAs) would be able to be established by those with HI plans that have a significant deductible. Employers and employees would be able to deposit money into the accounts. The accounts would grow tax-free.

According to the reports:

"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." (See the yahoo article).