Council for Affordable Health Insurance, Alexandria, Virginia. Like many other employers who have given their employees high deductible health insurance, the Council's health care costs have remained virtually constant since 1993. Knox Semiconductors, Rockport, Maine. Available evidence suggests Medicare can affect significant savings with MSAs. It is difficult to predict the budget impact of offering MSAs to Medicare beneficiaries, as it represents a fundamental change in federal health care programs.
Available reviews suggest that savings are possible.
A recent Congressional Research Service analysis shows significant savings for each beneficiary choosing an MSA option. The model does assume a 50 percent co-insurance on outpatient psychiatric expenses and does not provide for benefits such as prescription drugs, dental care, or vision care. A Congressional Budget Office review shows that first- dollar Medigap coverage costs billions of dollars. These dramatic savings demonstrate the powerful destructive force of first-dollar coverage on cost containment. Limiting the ability of Medigap insurers to provide low deductible policies could serve as a starting point toward self-insurance for Medicare.