The Medical Savings Account Program Model For Employers
III. Incentives for Healthy Life-styles

Healthier people are more careful with their lives, avoid or minimize exposures to adverse health events, and follow healthful practices. Healthier people and those who strive to be healthier do not use medical care and services as often as those less careful with their lives.

Tangible rewards such as cash incentives are designed to influence employees and families to participate actively in health promotion and illness prevention programs. Successful programs are usually based on the honor system. Employees may sign an annual agreement that specifies certain agreed-upon behaviors in return for defined amounts of compensation added to the payroll.

"Both insured and self-insured employers should offer employees benefit packages which are similar and warrant no greater maximum out-of-pocket exposure than provided by the previous employee plan."

Healthy life-style incentives are not a mandatory part of the MSA program, but are highly recommended, based on successful employer experience. The added cost for employee participation needs to be included in employer budgets for the MSA plan. Incentives by paycheck typically range from $10 to $50 monthly.

Participating employees/families typically agree in writing that they will:

1. Not smoke,
2. Be free of illegal drugs, chemicals, and substances,
3. Use alcohol in moderation and not drink and drive,
4. Use automobile seat belts 100% of the time,
5. Weigh within 20% of prescribed weights on the Metropolitan Life tables,
6. Follow healthy eating habits and maintain cholesterol < 200,
7. Have or try to maintain blood pressure readings below 140/90,
8. Follow healthy exercise habits. (Can be employer sponsored or promoted).

Note: Individuals who do not qualify under items 5, 6, or 7 can qualify for the cash incentive payments by providing documentation they are adhering to their regular medical provider's prescribed course to correct or alleviate the situation.

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org