CareFirst BlueChoice Inc. Brings Consumer Directed Health Option to HMO Offerings
High deductible HMO to be paired with funding arrangements
OWINGS MILLS, MD (October 3, 2006) – Area consumers seeking to combine the traditional benefits of Health Maintenance Organizations (HMOs) with the added control and tax advantages of consumer directed health plans (CDH) will soon have a new option. Starting October 1, CareFirst BlueCross BlueShield, along with CareFirst BlueChoice, Inc., is rounding out its CDH portfolio, known as BlueFund Plans, with a high-deductible HMO paired with savings options. The product will be available in Maryland, District of Columbia and Northern Virginia.
The plans will be CareFirst’s first Health Savings Account compatible HMOs offered in the individual market. CareFirst launched HMO BlueFund plans for groups earlier this year.
The lower-premium, high deductible HMO-based plans, called BlueChoice HSA, encompass tax-friendly medical funding arrangements to be used to help cover health care expenses, along with the interactive tools members need to manage their money and to receive health and wellness education. Out-of-pocket expenses associated with each member’s prescription drug benefits are also applied against the high deductible HMOs.
Health Savings Accounts (HSAs) are funded by the member. Any year-end balances from either of the accounts roll over from year to year, and HSAs are portable. . Contributions to the HSAs can be made with pre-tax dollars, post-tax contributions are tax deductible, and contributed dollars can earn interest tax-free. HSAs are offered through CareFirst’s preferred bank, The Bancorp Bank.
Members can manage and track their HSA online at the www.myhsabankaccount.com member portal, which also offers interactive tools members can use to educate themselves on various aspects of health and wellness. With these tools, and understanding that they are now accountable for more of their health care expenses, members will have a better grasp of the true cost of health care and therefore greater motivation to ensure that their health care dollars are spent responsibly. Tools include the new internet hospital comparison tool, provided by WebMD Quality Services, which enables CareFirst members to compare treatment outcomes for 165 specific diagnoses and procedures for up to 10 hospitals at a time.
Individuals may choose an HSA with CareFirst’s preferred bank, The Bancorp Bank, or set up an account with their own bank. BlueChoice HSA members who enroll with The Bancorp Bank will also receive a new CareFirst BlueCross BlueShield debit card, enabling them to quickly and easily withdraw money directly from their HSA account. Members can visit www.carefirst.com, which provides interactive online tools to learn about various aspects of health and wellness, and The Bancorp Bank allows members to manage and track their account through www.myhsabankaccount.com. These tools enable individuals to get a better grasp of the elements contributing to health care costs.
“By adding an HMO-based plan, CareFirst has given consumers another affordable option with BlueFund’s one-stop shop appeal,” said Gregory A. Devou, CareFirst Executive Vice President and Chief Marketing Officer. “We are providing consumers the tools they need to make informed decisions about their health care, and ensuring they get the best care possible.”
Both medical and prescription drug coverage are combined under one deductible for members who have purchased a high deductible HMO with both medical and prescription drug coverage. Most preventive care is 100 percent covered, although a copay may apply in certain instances. Group members may get their care from any doctor in the CareFirst BlueChoice provider network.
Guidelines on what qualifies as acceptable medical spending of the HSA funds are listed in Section 213 of the federal tax code. More information on HSAs is available at http://www.treas.gov/offices/public-affairs/hsa/. Once established, any money from the HSA that is withdrawn for purposes other than qualified medical expenses is taxed as ordinary income plus a 10 percent penalty. The additional penalty is not assessed in similar situations for individuals after the age of 65.
In its 71st year of service, CareFirst, an independent licensee of the Blue Cross and Blue Shield Association, is a not-for-profit health care company which, through its affiliates and subsidiaries, offers a comprehensive portfolio of health insurance products and administrative services to nearly 3 million individuals and groups in Northern Virginia, the District of Columbia and Maryland. CareFirst BlueChoice is a for-profit affiliate under the control of CareFirst, Inc. Through its CareFirst Commitment initiative and other public mission activities, CareFirst supports efforts to increase the accessibility, affordability, safety and quality of health care throughout its market areas.