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

Abstract

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.

An Examination of Employee Benefits Cost Control Strategies in New Jersey Local Governments

“…Recent data indicates that medical savings accounts reduce costs by 12 percent for single coverage, and 34 percent for family plans. 26…”