title: Medical savings accounts: why do they work?
abstract: This article analyzes and reviews the cost and design characteristics of medical savings accounts (MSAs). By placing premium savings from high-deductible health insurance in medical savings accounts, individuals have an incentive to shop for medical services. A more market-oriented health insurance and delivery system results, as individuals are now both users and buyers of health care. Data show that most families would accumulate balances in their MSAs that may be used for future medical expenses or savings. Through program design, the potential problems of adverse selection and cost to risk can be greatly reduced.
authors.affiliation: Cleveland State University, USA.
authors.forename: M T
authors.initials: MT
authors.lastname: Bond
authors.forename: B P
authors.initials: BP
authors.lastname: Heshizer
authors.forename: M W
authors.initials: MW
authors.lastname: Hrivnak
mesh_terms: D017047:Cost Sharing / Q000379:methods*; D003365:Costs and Cost Analysis; D003625:Data Collection; D004649:Employee Incentive Plans; D005382:Financing, Personal / Q000379:methods*; D006264:Health Benefit Plans, Employee / Q000191:economics* / Q000706:statistics & numerical data; D018166:Health Care Reform / Q000191:economics*; D006302:Health Services Research; D007354:Insurance, Major Medical; D015203:Reproducibility of Results; D013660:Taxes; D014481:United States