Medical Savings Accounts: What is at risk?

Overview

The concept  of Medical Savings Accounts (MSAs)  – that individuals save and pay for  their own medical needs – emerged  in response to concerns  of escalating healthcare costs. This essay  explains key  theories supporting MSAs  in addressing  these challenges.  The  validity  of theoretical arguments is then examined using empirical findings from  country  studies.  This is followed  by a  discussion analysing  if MSAs  sufficiently address inefficiencies  of private insurance and thus represent an attractive alternative to financing healthcare.  Does the design of MSAs deliver benefits promised by  theory?  If  not, what is at risk? 

This report is part of a series, The World Health Report 2010 Background Papers, which were written to inform the process of developing the key messages of the World Health Report 2010: Health systems financing: The path to universal coverage.