The Medical Savings Account Program Model For Employers
IV. Wellness and Prevention Programs

Corporate, company, and worksite health promotion, wellness, and prevention programs are another form of active risk management. By avoiding, preventing, eliminating, or reducing premature disability, disease, and injury, people require less health care.

Successful health promotion programs reduce utilization of costly medical services. However, untargeted general programs do not consistently provide benefits that exceed costs and may not warrant implementation.

Worksite research confirms that properly conducted health risk appraisals (HRAs) can identify most high risk people. Corrective measures can then be used to manage identified risks and adverse environments. Care in selecting and using HRAs and attendant corrective wellness programs can reduce company costs.

Individual data obtained from health risk appraisals is provided solely to the employee. Explicit employee permission is required to make individual data available to others. Information learned from aggregate HRA data may be used by the company to determine what health promotion programs, if any, should be made available for employees. Appraisals and employer sponsored health promotion programs should be costed out in the health risk financing model. Company incurred costs to fund HRAs could exceed expected benefits and should be reviewed for affordability.

"Healthy life-style incentives are not a mandatory part of the MSA program, but are highly recommended, based on successful employer experience."

Some MSA programs include provisions for the company to pay for preventive medical examinations, immunizations, and diagnostic tests. Companies that pay directly for selected preventive services inform employees of their availability and when to seek them. Company dollars used for these purposes are tax-free employee benefits. Spending for this activity must be included in the health budget.

For employees exposed to certain adverse conditions and environments, OSHA requires medical histories, physical examinations, diagnostic procedures, and laboratory tests. These costs need to be budgeted within the overall funding model. They are rarely integrated with standard employee health benefits management, but employees and the company can both benefit by coordinating OSHA medical compliance requirements with the overall MSA program.

Workers compensation programs for health conditions are ordinarily separate from employee health benefits management. In recent years efforts have begun to integrate all employee health management aspects into a single coordinated program. Properly designed, the medical related portion of workers compensation can be funded and managed within the MSA program. This requires review of applicable laws and regulations followed by considerable management involvement if successful implementation is to follow. Development costs must be considered and may exceed benefits.

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