Health savings accounts (HSAs)

Health savings accounts (HSAs) are often touted as a way in which health expenditures can be lowered. Suppose that an individual is given a $1,500 account and a health insurance plan with a $1,500 annual deductible, but that covers all expenses thereafter. The person can use the account toward meeting the deductible, and any money not spent is transferred into the person’s account the following year. Advocates say that such a system would provide coverage for catastrophic losses but make people think twice before using services of marginal benefit. Critics believe that such a system would be harmful to those with chronic illnesses and would not save much money. Do you favor such a system over the status quo? Why?