The financial impact of medical savings account plans

As the pressure to control health care costs rises, businesses are attempting to find cost-effective alternatives to traditional forms of employee health care coverage. In response, financial analysts, benefit consultants, and academics have suggested Medical Savings Accounts (MSA) as a solution. The "MSA solution" involves a return to high-deductible health insurance coupled with all or part of the associated premium reduction being placed in an employee-owned account to be used for low-dollar health expenses. The possible financial impact of MSAs are discussed.