Medical savings accounts: what story do the data tell?
Fewer than a quarter-million tax units had reported a medical savings account (MSA) by the end of 2001. Nearly one-quarter of those having an MSA reported being previously uninsured. The tax data support the prediction that higher-income taxpayers are more likely than others to be MSA consumers. Surprisingly, the middle-aged had the greatest predicted MSA demand, even after income and marginal tax rate were controlled for. There is mixed evidence as to whether the account was treated as a savings vehicle. For those who continued their accounts, their build-up was generally sufficient to offset a year or two of future medical expenses below the deductible.
Minicozzi
Alexandra
A
Office of Tax Analysis, U.S. Department of the Treasury, Washington, DC, USA. Alexandra.Minicozzi@do.treas.gov
D006801:Humans; D007183:Income Tax / Q000706:statistics & numerical data; D020402:Medical Savings Accounts / Q000706:statistics & numerical data / Q000639:trends*; D008875:Middle Aged; D012923:Social Class; D014481:United States