Because there is a limited amount of money in each account, the consumer is encouraged to be cost-conscious. Advocates claim these accounts could significantly cut costs without cutting services or quality of care. Opponents say health care spending decisions don't work according to the same logic as, for example, purchasing a car. Historically, Republicans have shown more interest in medical savings accounts, although bipartisan support is developing. I confess I am no expert on the technicalities of various proposals, but perhaps I can help clarify the debate.
Individuals thus fund their own health care.
Anyone can open a savings account to set aside money for future healthcare needs. What is at issue politically is whether this money could be treated as tax-exempt, just as employees currently receive health insurance from their employers free from taxation. For this reason, it behooves all of us to study the idea closely. Other major arguments in favor of MSAs include that they could bring down the cost of health care, by giving an incentive to beneficiaries to be more aware of costs when they shop around for doctors, prescriptions, etc. Because beneficiaries get to keep any unused money in the account, they may have more incentive to live healthy lifestyles.