First, the MSA is the employee s money. If they become unemployed, the money could be used to pay insurance premiums so the family wouldn t be uninsured. Or if unused the money could accumulate into a substantial amount to set aside for retirement. Or, if we were really radical, we could allow people to use the money to start up a business, educate children etc. Most people like the idea of keeping their own money.
Few people find themselves faced with expensive medical costs.
By the time most will incur large costs, they will have accumulated money in the MSA to pay the deductible. Medicaid plays an important role insuring low income Vermonters. In fact, we have one of the highest Medicaid population percentages in the country by our own choosing. We can reform the delivery of Medicaid by using a publicly financed voucher program. This is an innovative solution that will reduce public outlays, reduce health care costs by eliminating cost shifting, increase access to care and empower the poor to make decisions about their health care needs.