Education Will Set You Free

Posted by Mark Todd Engler in Employment-based insurance, HSAs, Health Care, Minnesota on Feb 26th, 2009 | no responses

The key to making health savings accounts more attractive to workers, according to a Minneapolis Star-Trubune report, is for companies switching to the plans to offer employees comprehensive learning aid about HSA benefits and how to best use them.

The story describes how LifeSource, a St. Paul-based organ-donations coordinator, "didn't just dump medical decisions in (employees') laps" and "shift medical costs to them" by enrolling them in HSA plans. Rather, "it showed how they could all save money" and "taught them how to make smart choices."

In 2005, LifeSource decided to offer its employees the option of switching from traditional health insurance to high-deductible policies.

The organization educated employees on cost-saving strategies such as going to MinuteClinics for minor illnesses and shopping around for everything from prescription drugs to mammograms.

It also gives them data showing how much their collective choices can save. Last year, for example, they cut prescription drug costs 28 percent by using more generics and by shopping for the best pharmacy prices.

But the organization also counsels employees not to cut preventive services — which are covered by its plan — and sponsors wellness programs such as a health fair and healthy meals. It also purchased access for all employees to Healthyroads, an Internet-based health resource that also offers free, one-on-one phone coaching.

In addition to employee-satisfaction being high, Lifesource's costs "held steady between 2008 and 2009…(and) actually fell in the previous two years, following a period of increases at the plan's inception."

For any company considering a switch to HSA's, there's no getting around the fundamental importance of education, University of Minnesota associate finance professor Steve Parente tells the paper. "If you just introduce these plans without an education component, they'll fail."