The fortunate few who get an MSA will be able to make tax-deductible contributions to an account to pay routine medical expenses. The accounts are coupled with high-deductible insurance that pays catastrophic expenses. Premiums are lower for high-deductible policies, so the premium savings can provide some or all of the money for the account.
Two years ago, the Democratic Party was imploding. Democrats were losing elections almost everywhere. They even lost mayoral elections in Los Angeles, and New York City and Jersey City – places where there virtually are no Republicans. They had no platform and no agenda.
From the inception of Social Security, politicians encouraged us to think of it as similar to private pensions. Yet as Baby Boomers near retirement, the cruel reality is becoming more and more evident.
One of the most exciting and popular health care reforms these days is Medical Savings Accounts (MSAs). Legislation before Congress would allow employees and their employers to choose high deductible insurance and put the premium savings aside tax free to pay small medical bills. Employees would get to keep any money left in their personal MSA at the end of every year or roll it over to pay future medical expenses.