Highmark, in partnership with Visa, markets new Healthcare Gift Card

Pennsylvania-based health insurer Highmark, in partnership with Visa, has begun to market a new Healthcare Gift Card in an effort to encourage the use of medical services among certain populations, the Pittsburgh Post-Gazette reports.

The cards themselves cost $4.95, and consumers who purchase the cards can place between $25 and $5,000 on them for use at businesses that Visa has designated as related to health. Such businesses include physicians, dentists and pharmacies, as well as gyms (Toland, Pittsburgh Post-Gazette, 11/2). Consumers can purchase the cards online or through a toll-free telephone number. Highmark first will market the cards in Pennsylvania but likely will begin to market them nationwide in the future.

According to Highmark officials, the company hopes to target consumers who seek to help individuals, such as college students and seniors, pay for medical services but do not want to offer cash. Kim Bellard, vice president of e-marketing and customer relations at Highmark, said, "You would give this card if you want to make sure that they have the funds for health-related purchases." She added that Highmark within the next year expects to sell "several hundred thousand" of the cards, with most valued at $75 to $100.

However, some health care industry observers said that they expect the cards to have limited appeal for consumers. William Custer, director of the Center for Health Services Research at Georgia State University, said, "I assume there will be a demand for it, but it's a niche product" (Maher, Wall Street Journal, 11/6