Question

A major benefit of a health savings account is that it 0 A, creates the incentive to see a doctor regularly. O B. eliminates rising health care costs. ° C. combats moral hazard O D. means more health care services will be demanded

Answer 1

Option B.

• Health savings account is also known as medical savings account that are available for individuaIs who are enrolled under high deductible health plans, that pay for the medical expenses of the account holder.
• Under this plan, the account holders get the benefit of reduced health care costs as income taxes are not applicable for this account.
• Therfore, a health savings account helps in eliminating rising health care costs, which allow the account holders to save these expenses for a later point of time.