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Medical savings accounts: assessing their impact on efficiency, equity and financial protection in health care

  • Olivier J. Wouters (a1), Jonathan Cylus (a1) (a2), Wei Yang (a1) (a3), Sarah Thomson (a1) (a2) (a4) and Martin McKee (a2) (a5)...


Medical savings accounts (MSAs) allow enrolees to withdraw money from earmarked funds to pay for health care. The accounts are usually accompanied by out-of-pocket payments and a high-deductible insurance plan. This article reviews the association of MSAs with efficiency, equity, and financial protection. We draw on evidence from four countries where MSAs play a significant role in the financing of health care: China, Singapore, South Africa, and the United States of America. The available evidence suggests that MSA schemes have generally been inefficient and inequitable and have not provided adequate financial protection. The impact of these schemes on long-term health-care costs is unclear. Policymakers and others proposing the expansion of MSAs should make explicit what they seek to achieve given the shortcomings of the accounts.


Corresponding author

*Correspondence to: Olivier J. Wouters, Researcher, LSE Health and Social Care, Cowdray House, London School of Economics and Political Science, Houghton Street, London WC2A 2AE, UK. Email:


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