Experimental Medical Savings Program A Bust Ada County Commissioners Searching For Replacement Health Care Plan

Ada County was the first in the nation to authorize a Medical Savings Account program, touted as a way to save both the public and workers money on medical insurance.

But county commissioners say it costs more than it saves. About 15 percent of the county’s 1,000 employees are enrolled in the program, which is set to expire Dec. 31.

The program was pushed by former County Commissioner Gary Glenn, who was voted out of office last November in favor of Democrat Frank Walker.

“The MSA is a red herring in that it drives our standard insurance up too much to keep …. You have to go to total MSA or cut it. It just doesn’t work with both,” Walker said.

Blue Shield is raising the county’s insurance rates by 30 percent, about $328,000, because the program decreases the premium dollars paid into the system and removes healthier people.

Under the MSA program, the county purchased insurance policies with a $2,000 deductible, $3,000 for families of two or more. That costs less than the $100 deductible policy. Part of the money the county saves on premiums goes into an employee medical savings account. The employee then uses the funds for medical expenses up to the amount of the deductible.

The county is looking to offer a point-of-service plan, which gives employees both standard and health maintenance organization coverage.

That should bring premium rates down, said Terry Johnson, human resources director.

“When you go to a point-of-service, you will have more employees using the HMO part of the plan, which is overall a significantly cheaper form of insurance,” Johnson said. “It offers the best of managed care and conventional medical insurance.”

Glenn said the current County Commission has done all it could to undermine the program. “There are other ways to get around (rate increases) besides canceling the MSAs completely,” he said.

Commissioners plan to make a final decision in the next two months, with the goal of having a health care plan implemented by Oct. 1, when the new budget year starts.

“I’m willing to listen, but I’m not willing to take a $300,000 hit to keep it,” said Commissioner Roger Simmons.