Medical Savings Accounts: Findings From Insurer Survey (Letter Report,
12/19/97, GAO/HEHS-98-57).

In 1996, Congress authorized a four-year demonstration program for
medical savings accounts, tax-favored trusts used in connection with
high-deductible health insurance plans to pay medical expenses. The
first phase of a GAO-contracted study of medical savings accounts shows
that although the insurance industry responded rapidly in creating
qualified medical savings account plans, consumer demand has been lower
than expected. Lower demand reflects, in part, the complexity of the
medical savings account product for both agents and consumers. Insurers
report that product sales have been increasing over time.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  HEHS-98-57
     TITLE:  Medical Savings Accounts: Findings From Insurer Survey
      DATE:  12/19/97
   SUBJECT:  Health insurance
             Health insurance cost control
             Employee medical benefits
             Surveys

             
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Cover
================================================================ COVER


Report to Congressional Committees

December 1997

MEDICAL SAVINGS ACCOUNTS -
FINDINGS FROM INSURER SURVEY

GAO/HEHS-98-57

MSA Insurer Survey

(101705)


Abbreviations
=============================================================== ABBREV

  MSA - Medical Savings Account
  ABC - test

Letter
=============================================================== LETTER


B-278697

December 19, 1997

The Honorable William V.  Roth
Chairman
The Honorable Daniel Patrick Moynihan
Ranking Minority Member
Committee on Finance
United States Senate

The Honorable Bill Archer
Chairman
The Honorable Charles B.  Rangel
Ranking Minority Member
Committee on Ways and Means
House of Representatives

The Health Insurance Portability and Accountability Act of 1996
established a demonstration of Medical Savings Accounts (MSA) and
directed GAO to contract for a study of MSAs, including consumer
choice and the scope of high- deductible plans purchased in
conjunction with MSAs.  We competitively awarded four contracts to
companies with experience in health economics, health insurance, and
actuarial science and selected Westat and its partners to complete a
study of insurers' response to MSAs. 

The first phase of that study has been completed and is included in
this report.  The final report of the MSA study will be submitted, as
provided in the law, no later than January 1, 1999. 

Please contact me at (202) 512-6806 or William J.  Scanlon, Director,
Health Financing and Systems Issues, at (202) 512-7114 if you or your
staffs have any questions. 

Richard L.  Hembra
Assistant Comptroller General




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WESTAT REPORT ON INSURER SURVEY
============================================================== Letter 



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