Steps For Establishing An Effective MSA Program
Step Three: Selecting Health Cost Management Approaches

Prepare a comprehensive healthy life-styles and health benefits plan tailored to the needs and preferences of the employer and employees. Included in a comprehensive Managed Health Benefits Plan may be:

A Medical Savings Account (MSA).

• Complete the risk financing model.

High Deductible or Excess Risk Medical Insurance.

• Establish the retention levels
• Arrange for re-insurance or purchase high deductible major medical insurance policies.

Health Life-style Incentives.

• Determine which incentives to use and how much they will cost.

Wellness and Prevention Programs.

• Review available active and passive programs available.
• Contract with vendors or provide in-house as appropriate, effective, and economical.
• Cost out and compare with expected benefits.

Active Clinical Case Management.

• Locate large-case and personal resource support program vendors who will meet desired company objectives and requirements.
• Arrange provider network rental agreements or contract separately for large- case management as appropriate.
• Coordinate with worker's compensation and related requirements.

"It is possible that employers might see their costs for health insurance reduced by 12 to 15% the first year of MSA participation."

• Determine roles and need for a consulting physician or specialist nurse program.
• Cost out and assess relative benefits and alternatives.

MSA Program Administration.

• Determine if administration of the Medical Savings Account component will be done internally or externally.
• Determine need and preference for a third party administrator, administrative services only, or health plan/carrier arrangement associated with either insured or self-insured objectives.
• Consider and determine computer software and connectivity requirements.
• Establish systems for periodic audits to identify opportunities for overall plan improvement and timeliness, accuracy and efficiency of payment processing as well as early identification of potential high loss claims.
• Establish standards of performance overall and for each expense center within the compensation and benefits plans.
• Cost out all vendors and total system needs.

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