The parent company of Blue Cross and Blue Shield of Minnesota is selling for $500 million its business for administering health savings accounts.

Utah-based HealthEquity Inc. announced the deal Thursday afternoon, saying the acquisition of Eagan-based Further would add 550,000 health savings accounts, bringing the company's total to about 6.3 million HSA members.

People enrolled in high-deductible health plans often open HSAs so they can pay for certain out-of-pocket medical costs with tax-deferred savings.

Some employers put funds into the accounts as an incentive for workers to enroll in high-deductible health plans, which are meant to give consumers incentives to shop smartly for medical care.

"For more than 30 years, Further has been helping people seamlessly manage their money, health and life," said Jay Matushak, senior vice president and chief financial officer of Stella Health, the Eagan-based parent company of Blue Cross of Minnesota that also owns Further. "With Stella placing a greater strategic emphasis on developing new care-delivery models, HealthEquity was the ideal company to carry on Further's legacy of helping people spend and save wisely on their health care."

The deal is scheduled to close by September, at which point HealthEquity expects the transaction to add about $60 million in revenue on an annualized run-rate basis, according to a news release announcing the transaction. The Utah-based company said it expects to achieve about $15 million in efficiencies on an annualized basis within three years.

Employers who offer their workers high-deductible health plans from Blue Cross of Minnesota health insurance often pair the insurance with HSAs that are administered by Further.

In addition to HSAs, the company administers flexible spending accounts (FSAs), health reimbursement arrangements (HRAs) and voluntary employee beneficiary association (VEBA) accounts for large corporations, small businesses, labor unions, retirees and public sector groups.

Further employs about 360 people. Blue Cross of Minnesota is the state's largest nonprofit health insurer.

Christopher Snowbeck • 612-673-4744

Twitter: @chrissnowbeck