Medical Savings Accounts and Preventative Health Care Utilization

Abstract

Introduced during the late 1990’s, medical savings accounts (MSAs) increase cost sharing_x000D_ between employers and employees. Despite assurances from proponents claiming cost sharing_x000D_ will stem the tide of rising health care prices and expenditures, skeptics argue that MSA_x000D_ enrollment could reduce utilization of preventative care. This paper estimates preventative care demand models based on data from the National Longitudinal Survey of Youth. These models measure the association between MSA enrollment and the utilization of physicals_x000D_ among adults and doctor visits among children. The models control for endogeneity using a_x000D_ variety of techniques. The results indicate that medical savings account enrollment does not_x000D_ significantly impact the utilization of preventative care.