Legislators seek tax break for medical savings accounts.

MSAs put onus for spending back on consumers

Legislation headed to the Oregon House is aimed at expanding health care options by giving employers and individuals tax breaks on money put into medical savings accounts.

House bills 2865 and 3018 both would set up so-called medical savings accounts or medical IRAs. Unlike existing flexible spending plans in which employees must "use or lose" contributions, workers would get more choices and have the chance to keep the money if they remain healthy. (See related story in Focus section, page 19.)

Employers now get state and federal tax exemptions on health insurance premiums but don't get any breaks for setting aside funds in MSAs. Those funds are fully taxed, the same way other employee wages are. The proposed legislation would give …