Medical Savings Accounts as a Healthcare Financing Tool: A Comparative Analysis and Policy Options for Georgia
DOI:
https://doi.org/10.52340/healthecosoc.2026.10.02.7Keywords:
Medical Savings Accounts, Health Savings Accounts, Health Financing, Universal Health Coverage, Financial Protection, GeorgiaAbstract
Introduction: The growing challenges of financial sustainability, population aging, and rising healthcare expenditures have intensified interest in alternative health financing mechanisms. Medical Savings Accounts (MSAs) have emerged as one such approach, combining individual responsibility with the pre-funding of future healthcare needs. This study aims to examine the theoretical foundations of Medical Savings Accounts, analyze international experiences with their implementation, and assess their potential applicability within the Georgian healthcare system. Methods: The study employs a narrative literature review and comparative policy analysis. The theoretical foundations of MSAs were examined alongside the experiences of Singapore, the United States, China, and South Africa. The Georgian healthcare system was assessed using available statistical data, policy documents, and evidence from international organizations. Results: The findings indicate that Medical Savings Accounts can promote individual responsibility, mobilize additional financial resources, and facilitate the financing of routine and moderate healthcare expenditures. However, international evidence suggests that MSAs alone are insufficient to provide adequate financial protection against catastrophic and high-cost medical events. The most successful models integrate individual savings with health insurance and social protection mechanisms. In Georgia, the large-scale implementation of mandatory medical savings accounts is constrained by relatively low income levels, a substantial informal labor market, and persistent socioeconomic inequalities. Conclusion: Medical Savings Accounts should not be viewed as a substitute for Universal Health Coverage. Rather, they may serve as a complementary financing mechanism that supports individual financial preparedness and contributes to health system sustainability. For Georgia, the most feasible policy option appears to be the gradual development of voluntary Health Savings Accounts integrated within the existing Universal Health Coverage framework.
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