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Medical Savings Accounts: Findings From Insurer Survey

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Report Type Reports and Testimonies
Report Date Dec. 19, 1997
Report No. HEHS-98-57
Subject
Summary:

In 1996, Congress authorized a four-year demonstration program for medical savings accounts, tax-favored trusts used in connection with high-deductible health insurance plans to pay medical expenses. The first phase of a GAO-contracted study of medical savings accounts shows that although the insurance industry responded rapidly in creating qualified medical savings account plans, consumer demand has been lower than expected. Lower demand reflects, in part, the complexity of the medical savings account product for both agents and consumers. Insurers report that product sales have been increasing over time.

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