Medical savings accounts - Still a good idea

The future of medical savings accounts will likely be decided this fall as congressional negotiators iron out some final version of the patients' bill of rights that has already been approved by the U.S. House.

Results of a five-year-old experiment that made some 750,000 Americans eligible for the accounts have been mixed. Only 43,000 to 100,000 individuals have established medical savings accounts, which allow the self-employed and employees of small businesses to set aside tax-free dollars to pay for their medical needs. In addition, participants are required to maintain catastrophic health insurance.

Critics say the medical savings account are a boon to the wealthy who can best afford to sock away money and pay the sometimes expensive premiums for catastrophic coverage. But backers point to the undisputed fact that two out of five holders of medical savings accounts are individuals who previously had no health-insurance coverage.

Under consideration is a proposal to make the program permanent and to allow both employees and employers to contribute to the accounts.

These accounts have proven themselves to be a useful way to provide health coverage. Congress should extend the program.