One of the biggest changes in the health-care field is the creation of Medical Savings Accounts

One of the biggest changes in the health-care field is the creation of Medical Savings Accounts under the new health-reform law. Backed by the American Dental Association and other health organizations, it gives individuals the chance to open an account with tax-free savings that can be used to pay medical expenses, including dental bills. The way it works: Insurance companies will be able to sell 750,000 high-deductible policies for big medical expenses. The deductibles must be between $1,500 and $2,250 for an individual and $3,000 to $4,500 for a family. Once a person buys such a policy, individuals can open a Medical Savings Account, depositing money from their paychecks that is not taxed. The maximum, annual contribution is 65 percent of the insurance deductible for a person and 75 percent for families. Workers at small companies and the self-employed also are eligible to open MSAs.

Judi Hasson

Washington Correspondent