Question

B. What are the advantages and disadvantages of medical savings accounts as a form of health care reform?

Answer 1

Advantages :They reduce premiums for base plans , it helps people with low medical funds to create savings for future days of unfortunate expenditures , acts as a tax saving mechanism for highly paid employees , the account is portable , and funds not used rolls over to next year .

Disadvantages : high deductible requirement , due to uncertain nature of illness sometimes savings put a huge cost on consumption and income , fees for record keeping and maintainance is high .