Estimation of Initial Medical Savings Account Balance in Relation to Personal Health Care Expenses in Poland

Marta Borda


The purpose of this paper is to analyze Medical Savings Accounts as an instrument used to fi nance private health care expenditure incurred by individuals in Poland. An Medical Savings Account (MSA) represents a mechanism of health care fi nancing, which relies on the accumulation of personal savings to cover the costs of health care services at the time of consumption. The paper focuses on voluntary MSAs, which — from an individual’s perspective — can be considered as a tool for fi nancing additional out-of-pocket medical expenses, especially after retirement. The concept and specifi c characteristics of an MSA and a fi nancial product combining the Medical Savings Account with insurance against catastrophic health care costs are presented here. Next, with the use of actuarial methods, a model is proposed in order to estimate the amount of initial MSA balance, which represents a single payment made to this account to cover future health care costs without additional contributions. In the analysis the discounted value of health care expenses of an MSA holder is estimated depending on expected health care expenses, assumed interest rate and mortality rates. The results of the conducted simulation analysis can be useful in practice, especially in the context of accumulation of savings to cover private medical expenses incurred by retirees, which — if are funded on an ongoing basis — can result in a signifi cant burden for retirees’ household budgets
Author Marta Borda (MISaF / IZF / KU)
Marta Borda,,
- Katedra Ubezpieczeń
Journal seriesVestnik Finansovogo universiteta. Mezdunarodnyj teoreticeskij i naucno-prakticeskij zurnal , [Bulletin of the Financial University], ISSN 2221-1632, (4 pkt)
Issue year2015
Publication size in sheets0.4
Keywords in EnglishMedical Savings Account; health insurance; health care expenses; actuarial methods
Languageen angielski
Score (nominal)4
ScoreMinisterial score = 4.0, 02-07-2019, ArticleFromJournal
Ministerial score (2013-2016) = 4.0, 02-07-2019, ArticleFromJournal
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