Blue Cross and Blue Shield of North Carolina has announced the start-up of a group health savings account product with Mellon Financial Corp.'s human resources and investor solutions business.
The product, HSA Blue, consists of a high-deductible health plan from Blue Cross and a health savings account administered by Pittsburgh-based Mellon, the companies said Thursday.
HSA Blue is to become available to employer groups Jan. 1. The companies said they plan a similar product for individuals in 2005.
In addition, HSA Blue members and their employers may contribute to an interest-bearing, FDIC-insured account - offered through Mellon - that can be used to pay for qualified medical expenses. Account holders are to get checks and a debit card to use for such payments.
An HSA account functions much as an IRA does but is savings for medical care. When a member's account reaches a minimum balance, the member may invest additional contributions in a selection of mutual funds available through Dreyfus Corp., a Mellon company.
