Table 2

Arrangement	Effect upon the incentive to reduce health care consumption
Threshold
A higher threshold strengthens the incentive to restrain use.	Positive
Threshold as an increasing function of account balance diminishes the incentives to abate health care use as it penalizes individuals who consume less.	Negative
Balance
The longer one has to wait before withdrawing unspent funds, the weaker will be the incentive to restrain use.	Negative
More restrictions on the use of unspent funds result in weaker incentives to restrain use.	Negative
Setting a maximum permitted balance diminishes the incentive to abate use and, once the maximum is reached, eliminates it. A larger permitted balance provides stronger incentive.	Negative
Taxes
Taxing the contribution weakens the incentive to contribute to MSAs.	Negative
Taxing interest income weakens the incentive to accumulate balances and, in turn, weakens the incentive to abate use.	Negative
Savings
If individuals contribute to MSAs as a substitute for other savings, then the incentive to restrain use will be strong.	Positive
Compulsory savings weakens the incentive to reduce use.	Negative