However, numerous scientific studies show that health care consumers can and do make cost- conscious decisions when given a financial incentive to do so. Critics say consumers will forgo necessary or preventive care to save money in their medical savings accounts, but studies show that MSAs do not deter preventive care. Rather, savings result from reduced use of optional services and cost-based selection among competing providers. According to critics, MSAs would attract the healthy, leaving the sick with conventional insurance. However, companies currently using MSA-style health plans have not had significant problems with adverse selection.
Critics claim MSAs are regressive, providing benefits pri- marily to the wealthy.
MSAs represent a significant step in solving the prob- lems facing our health care system. Supporters of MSAs should not be distracted by flawed and misplaced criticisms. To view this entire document please click here .