Good Medicine
Medical savings accounts offer tax advantages and more--but you'd better rush to get them.
The health insurance market for entrepreneurs will take on a hurly-burly Wild West look come January 1, 1997, when The Health Insurance Portability and Accountability Act takes effect. That's when insurance companies, as well as banks and financial services firms--and who knows who else--will start offering medical savings accounts (MSAs) on a nationwide scale.
MSAs allow individuals with high-deductible health insurance plans to set aside money for out-of-pocket medical expenses and gain advantages on federal taxes. They have existed on the state level for some time: Eighteen states already allow a deduction on state income taxes for MSAs, according to Jack Strayer, director of federal affairs for The Council for Affordable Health Insurance, a trade association.
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