Related Experiment Videos
Medical savings accounts: why do they work?
M T Bond1, B P Heshizer, M W Hrivnak
1Cleveland State University, USA.
Benefits Quarterly
|December 9, 1995
Summary
Medical savings accounts (MSAs) incentivize healthcare shopping by linking insurance savings to user spending. This promotes a market-driven system, with most families accumulating funds for future needs and mitigating risks through careful design.
Area of Science:
- Health Economics
- Healthcare Policy
- Consumer Behavior
Background:
- High-deductible health insurance plans often include Medical Savings Accounts (MSAs).
- MSAs aim to empower individuals as both consumers and purchasers of healthcare services.
- Market-based healthcare reforms are increasingly exploring consumer-driven options.
Purpose of the Study:
- To analyze the cost and design features of Medical Savings Accounts (MSAs).
- To evaluate the impact of MSAs on consumer behavior in healthcare purchasing.
- To assess the potential of MSAs to create a more market-oriented healthcare system.
Main Methods:
- Review of existing literature on Medical Savings Accounts.
- Analysis of cost and design characteristics of MSA programs.
- Examination of data on family savings accumulation within MSAs.
Main Results:
- MSAs provide a financial incentive for individuals to compare prices for medical services.
- Most families utilizing MSAs are projected to build savings for future healthcare expenses.
- Strategic program design can effectively reduce issues like adverse selection and cost-related risks.
Conclusions:
- Medical Savings Accounts can foster a more efficient, consumer-driven healthcare market.
- MSA design is crucial for maximizing benefits and minimizing potential drawbacks.
- These accounts offer a viable mechanism for individuals to manage healthcare costs and savings effectively.