Medical Savings Accounts are a relatively new option and one that is catching on in some places. The idea is to put money aside to pay for doctors, medicines and even tests. The plan works much like any other savings account. The difference is that you’re not looking ahead to a vacation or Christmas shopping spree with the money, you’re actually looking ahead to a time when the money in that account can make a huge difference.

Unfortunately, illness doesn’t need an appointment. It’d be easier to handle if you knew you were going to have the flu on February 13, but there’s no way to make that prediction. You can create a medical savings account now so that you’re ready when you do become ill.

For most people, the cost of the doctor’s visit added to the cost of prescriptions is bad enough, but they’ll also be taking time off work - another expense at a time when all the money is flowing out while nothing is coming in. That’s why a medical savings account makes so much sense.

As a rule, medical savings accounts are established by small businesses to pay any and all out-of-pocket medical costs. If you’re considering starting this type of account, you’ll likely need an administrative services only company to set up and oversee the account. If you’re in doubt of how to get started, talk to your insurance broker for advice.