NASCO, IBM Sign Ten-Year Agreement for Outsourcing Services

Fredrik Johnsen

National Account Service Company LLC (NASCO) (Atlanta, Ga.), a processor of health claims for, and owned by, Blue Cross and Blue Shield, has signed a 10-year services contract, valued at more than $300 million, with IBM.

Under the agreement, IBM Global Services will provide information technology services in support of the NASCO Processing System (NPS), which processes health claims for Blue Cross and Blue Shield plans across the country.

"NASCO is committed to helping the Blue Cross and Blue Shield Plans differentiate themselves in today's rapidly changing health care market," says John E. "Buddy" Dye, chief executive officer of NASCO. "We are confident that with IBM, NASCO and the Blue Cross Blue Shield Plans we serve will have the expertise and resources to move aggressively into the e-business arena and to ensure early compliance with the requirements of the Health Insurance Portability and Accountability Act (HIPAA)."

To support NASCO’s plans, IBM will expand its existing facility in Mechanicsburg, Pa. to handle health care application development and maintenance. NASCO’s data center and server operations will be moved to and maintained in IBM’s data center in Lexington, Ky.

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