Consortium Health Plans Blue Healthcare Bank Webinar

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Consortium Health PlansBlue Healthcare Bank
Webinar
October 10, 2007
Blue Healthcare Bank is an independent licensee
of the Blue Cross and Blue Shield Association
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Strategic Imperatives
Blue Plans recognize the need to develop a
collective asset that will allow Plans to remain
competitive in the evolving healthcare market
Position Blue Plans with an integrated CDHP
solution
Create service differentiation for customers and
providers
Capture economic value in high growth markets
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Value Proposition
The expertise and design of BHB will position it
as an industry leader, offering

• Seamless integration
• Modularity
• Differentiated member capabilities
• Competitive pricing and fees
• Economies of scale
• Brand consistency

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Structure and Governance
Blue Healthcare Bank, a BCBS-owned Utah Federal
Savings Bank
33 Blue Plans
BCBSA
Blue Healthcare ServicesBoard of Directors
100
Robert C. GrossCEO
Plans Holding Corporation
100
Glen Walbeck CFO
Al Pino COO
Rebecca Bergeson CRO/Compliance/Legal Officer
Terry Cooney CMO
Rick Mead CTO
Sue Larsen CAO
John Orner CIO
Loan Executives
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Bank Board Approved 5 Year Plan
Number of H.S.A. Accounts (000s)
Source NADM, 2006.
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Bank Board Approved 5 Year Plan
H.S.A. Deposit Balance (end of year -
Millions)
Excludes Member Investment Account Balance
Source NADM, 2006.
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Bank Status Plan Participation
13 Plans will be implemented and selling Banks
Products and Services by 1/1/08
1/1/2007Pilot Plans
Q2-Q4 2007
1/1/08

• Arkansas BCBS
• BC of Idaho
• BCBS of Michigan
• BCBS of South Carolina

• The Regence Group
• BCBS of Massachusetts
• BCBS of Rhode Island
• BCBS of Arizona
• BCBS of Hawaii

• FEP
• HCSC
• BCBS of Kansas City
• California BS

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Plan Advisory Groups

• Blue Healthcare Bank is engaging 2 Plan Advisory
  Groups in providing input in shaping the shared
  asset
• Implementation Plan Advisory Group (I-PAG)
  advises Bank Team on the day to day issues
  encountered in the engagement and implementation
  of Plans with the Bank.
• 13 Plans
• Multi-disciplines (CFOs, Operations, Sales,
  Marketing, etc.)
• Meeting quarterly
• 5 subgroups
• Strategic Plan Advisory Group (S-PAG) advises
  Bank Team and Plans Holding Corporation on the
  mid-term and long-term direction of the Bank
• Primarily CMEs

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Products and Services
Blue Healthcare Bank offers competitive
enrollment, funding, payment and servicing
capabilities.
PSAAdministration
Enrollment/ PSA Funding
Investments
Credit
Customer Service
Payment Models

• Overdraft/ Line of credit option for HSA members
  (future enhancement)

• Higher interest yield options for HSA members

• BHB-based servicing
• Plan-based servicing

• PSA data consolidation
• FSA/HRA QME substantiation
• Reporting
• Billing

• Pre-enrollment support
• Varying funding mechanisms
• Separate member enrollment
• Group set-up
• Integrated Plan-BHB member enrollment

• Multi-purse debit card
• Member self-reimbursement
• Online bill pay
• HSA checks
• Health plan pays provider
• Crossover to member

Through a modular approach, Plans can choose for
2008 between a referral model and a fully
integrated approach.
Partial integration also can be provided to meet
Plan needs
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Retail Investment Concept
Simplicity
Sophistication
Lifecycle Funds
PLUS
CORE
SELF
Over 10,000 balance, a self- directed
environment would be available for
broker-assisted investing in stocks, bonds,
ETFs, etc. (In Development)
Additional top mutual funds available for
investors that want more specific investment
selection options (I.e. sector funds).
Best of Breed window comprised of top-
performing mutual funds from across all styles
(I.e. small cap growth, large cap value,
international).
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Market-tested BHB Marketing Platform
Marketing materials were focus group-tested with
large employers and consumers
FRONT

• Builds on Blue Distinction approach
• Innovative, exciting look
• Easy to read and understand

BACK
Based on this, Id ask BHS to come and present.
(BDM)
Keeps my interest high I really like we bring
it all together. (Consumer)
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Phased Design Implementation
Furthermore, Web-based marketing will be focused
to meet the products and services needs of Plans
Blue Healthcare Banks offerings enable members
of participating Blue Cross and Blue Shield
companies to more easily manage
healthcare-related personal savings accounts and
healthcare claims. Blue Healthcare Bank offers
a variety of services, including
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Questions