Health Savings Account Blog                  

Among the findings of the study:

-- Within Options Blue, health savings accounts (HSAs) appear to be the more motivational plan design: morbidity adjusted utilization is 25 percent lower than health reimbursement accounts (HRAs).

-- Members enrolled in Options Blue are 8 percent healthier than members of the traditional Open Access CMM product

"Options Blue gives members control over their health care needs and their health care dollars," said David W. Plocher, M.D., senior vice president of business intelligence and informatics for Blue Cross, who co-wrote the study with Cathy Lai, M.A., M.A. and Nancy Garrett, Ph.D. "This freedom, paired with the decision tools and support that our online member service center offers, helps members make wise decisions about their health care. The study suggests
that people with these products are more selective consumers and save
significant health care dollars."

Among the consumer-directed health plan products within Options Blue, HSAs have the lowest utilization. HSAs appear to engage enrollees in taking an active role in managing their health care needs and seem to lower health services utilization substantially.

The analysis used Johns Hopkins Adjusted Clinical Groupers (ACGs) as a risk adjustment tool to address the potential difference in health status.

ACGs is one of the most widely used population profiling tools in the health care industry.

About health savings accounts (HSAs)

Blue Cross was among the first health plans nationally to introduce a health plan compatible with HSAs. HSAs combine a high-deductible health plan with preventive coverage and a financial account that's funded by the consumer and the purchaser of the health plan to help pay a portion of the deductible. Once the account is used up, consumers pay the rest of the deductible out of their pocket. Once the deductible is met, the health plan kicks in and pays
for the majority of care until the member's out-of-pocket maximum is met.

Members who have Blue Cross' plans accounts are given an extensive, all-in-one online information resource with easy-to-use tools to help them make health care decisions. It includes information on costs, provider quality and prescription drugs, as well as secure access to account information. The account belongs to the employee, even when they terminate employment. Whoever
funds the account benefits from important tax advantages. Health savings accounts can even be used to pay for expenses not covered by traditional health plans, such as laser eye surgery or alternative care treatments.

Meanwhile, unused money in the account earns interest or can be invested. Any year-end balance rolls over to the next year and ontinues to accumulate.

About health reimbursement accounts (HRAs)

HRAs are similar to HSAs in that they combine a high-deductible health plan with preventive coverage and a financial account (see HSAs above). However, HRA accounts are funded only by the purchaser of the health plan and that purchaser (usually an employer) owns the account). Unused funds can rollover and expenses are limited to what the health plan covers.

Blue Cross and Blue Shield of Minnesota, with headquarters in the St. Paul suburb of Eagan, was chartered in 1933 as Minnesota's first health plan and continues to carry out its charter mission today: to promote a wider, more economical and timely availability of health services for the people of Minnesota. A not-for-profit, taxable organization, Blue Cross is the largest health plan based in Minnesota, covering 2.6 million members in Minnesota and
nationally through its health plans or plans administered by its affiliated companies. Blue Cross and Blue Shield of Minnesota is an independent licensee of the Blue Cross and Blue Shield Association, headquartered in Chicago.