Medical Savings Accounts: A Health Insurance Option for the Public Sector?

• Published in: Public personnel management Vol. 26; no. 4; pp. 535 - 544
• Main Authors: Bond, Michael T., Heshizer, Brian P., Hrivnak, Mary W.
• Format: Journal Article
• Language: English
• Published: Los Angeles, CA SAGE Publications 22-12-1997; Sage Publications, Inc; SAGE PUBLICATIONS, INC
• Subjects: Cost control; Costs; Employees; Employees' benefit plans; Employers; Evaluation; Expenditures; Government employees; Health Care; Health care expenditures; Health insurance; Health policy; Human resource management; Insurance; Insurance coverage; Medical savings accounts; Medical service; Medical Services; Ohio; Public Administration; Public employees; Public sector; Saving; Studies; United States; United States > US; Ohio
• ISSN: 0091-0260; 1945-7421
• DOI: 10.1177/009102609702600410

This article analyzes health insurance cost data from Ohio public employers and 27 Ohio private firms that have adopted Medical Savings Accounts (MSAs). The study shows that Ohio public employers could reduce their health insurance costs an average of 12 percent for single coverage and 34 percent for family coverage with MSAs, compared to traditional plans. Under the MSA plans, employee out of pocket costs (OPC) would also be lower compared to traditional plans. Data show that with MSAs most employees have funds remaining in their MSA account at the end of the coverage period that they keep. If MSAs had the same tax status of traditional health insurance, which is currently being considered by Congress, additional savings would be available to employees.