[libstripper]

The big problem is making Medicare a defined contribution system only when people become eligible for benefits, which assures no buildup of resources to cover the inevitable claims of aging people. The solution is simple: self managed, individually owned medical savings accounts accumulated over each individual’s life that would build up assets over each individual’s life, just as defined contribution retirement accounts do. Due to the wonders of compound interest, the funds an individual will contribute in his or her 20s will double four or five times by the time he or she attains age 65. Equally important, most 20 somethings have very low health care expenses, meaning almost all of their contributions to such accounts would be set aside to grow at the very time when such accumulation will, due to earnings compounding, be most effective. That's the cheap, effective route to dealing with both Medicare and Social Security problems.

[Trust but Verify]

As far as I’m concerned, HSA is the way to go for everyone. When consumers write the checks to pay the medical bills, they will be much more selective about what they have done and where they get it. That will force providers to compete. Everybody wins, and you have an account that grows tax free just like your IRA.