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MEDICAL SAVINGS ACCOUNTS: LEGISLATION IN THE 105TH CONGRESS (CRS Report for Congress)

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Release Date Revised July 27, 1998
Report Number 97-643
Authors Bob Lyke, Education and Public Welfare Division
Source Agency Congressional Research Service
Older Revisions
  • Premium   March 4, 1998 (6 pages, $24.95) add
Summary:

The Balanced Budget Act of 1997 (H.R. 2015) authorized a limited number of medical savings accounts (MSAs) for Medicare under a demonstration beginning in 1999. One of several new options to traditional Medicare, "Medicare+Choice MSAs" would be coupled with health insurance that has a high deductible but could offer additional benefits such as prescription drugs. Both the health insurance premiums and MSA contributions would be paid from Medicare capitation rates that vary by county and are adjusted for age, gender, and other risk factors.