Abstract
Medical savings account (MSA) plans are a form of medical insurance that combine high-deductible medical insurance with a tax-free personal trust account (used to pay medical bills not covered by insurance). MSA-like plans have been in existence in US companies for over 10 years, in Singapore since 1984 and in South Africa since 1994. MSA plans have a distinct advantage over other forms of medical insurance in that the locus of medical decision making remains with the patient and doctor; in addition, market forces are brought to bear on cost, availability and quality of medical services.
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