Policy Documents

Medical Savings Accounts and Managed Care

John C. Goodman and Merrill Matthews Jr. –
December 22, 2000

In this policy analysis, Medical savings accounts are examined. Many people believe that Medical Savings Accounts (MSAs) and managed care are mutually exclusive. Some strong supporters of MSAs are bitter enemies of managed care, and the managed care industry generally has opposed MSAs. But employers around the country are now combining Medical Savings Accounts and managed care. Medical Savings Accounts are inconsistent with the traditional philosophy of HMOs. But efforts to make medicine cost-effective are natural allies of Medical Savings Accounts.