MEDICAL SAVINGS ACCOUNTS GIVE CONTROL OVER HEALTH-CARE DECISIONS BACK TO INDIVIDUALS

Medical savings accounts, which are best thought of as similar to an individual retirement account for health-care purchases, are in the news once again. A very slanted Associated Press article published last week misled readers on this promising health-care reform. These accounts allow people to set aside money, tax free, to pay medical bills and the relatively low premiums for health-insurance policies with high deductibles necessary to protect against catastrophic illnesses. Individuals are allowed to set aside up to $1,462 from income taxes, while families can shelter up to $3,375. For some taxpayers and health-care consumers, it is cheaper to go the MSA route than to stay in a conventional health-insurance policy paying monthly premiums.

Since winning control of Congress in 1994, congressional Republicans have fought to expand MSAs. On the state level, MSAs have enjoyed tax-favored treatment in Missouri since 1993. We wish lawmakers well in their effort to return control over medical decisions to the individuals who always should have been in control.