Getting some form of insurance is always a worthwhile thing to do when it comes to dealing with your own health. You never know when you will get crippled by a severe illness, thus requiring you to be hospitalised for several days at a time. It is quite easy to see why medical insurance plans are so popular: they provide you with a way to get through such situations without too many issues and to help you get back to your everyday life as soon as possible.
Nevertheless, there are a few issues with conventional health care insurance programs that are still difficult to address. This is why medical savings accounts have been created: they are meant to take the place of regular health insurance programs without any of the added disadvantages that subscribing to such a program carries.
First of all, let’s talk about the major benefits and advantages of opting for medical savings accounts. The main reasoning for having a medical savings account is to make people more conscious about the way they spend their own money for medical treatment. Unlike a conventional insurance plan, where they insurer will be responsible for paying, you are free to do whatever you want with your own savings. Thus you have the liberty of choosing the place where you are getting treatment, which kind of services you would like and how much you are willing to spend for healthcare in general. You could literally choose which Expat dentist in Singapore you want to deal with, as you are in charge of your own money.
Since the above explanation makes medical savings account look similar to a normal savings account you could open in any bank of your choice, it is a good idea to explore the differences between the two. A medical savings account like medisave for dental is taxed at a much lower rate, and is also specifically meant to store money that will be exclusively used for medical treatment. Thus, you will be able to get by having to pay less tax money for keeping an account, but you are forced to use that money only for medical expenses. It is still possible to withdraw the money to use for other things, but remember that you will likely have to pay extra taxes and a fine for doing so.
Along with this incredible amount of flexibility, medical savings accounts also have some drawbacks of their own. They will likely cost you less to maintain than having a health care insurance program, but you will still have to pay bank fees and some form of taxes as a medical savings account is still considered as a type of bank account. Furthermore, there might be a limit on how much you can save. In fact, it may be impossible to just save a reasonable amount of money to even pay for your monthly prescriptions in some cases.
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