Resume Medical Savings Accounts: Effective mechanism for financing health care T engiz Verulava. Full Time Professor, MD, PhD. Ilia State University A key component of Georgian health care reform will be the intelligent balancing of market forces and government interventions. Singapore has achieved a balance appropriate for its population through a savings orientation. In 1984 Singapore adopted a system of Medical Savings Accounts. The concept of Medical Savings Accounts represents an innovative and alternative for the funding of health care systems. The fact that people are spending their own money rather than that of a third-party insurer has helped to curtail Singapores health care costs. Singapore spends less than other developed countries. From a theoretical point of view the Medical Savings Accounts concept helps to counteract the phenomenon of moral hazard in health insurance systems. Medical Savings Accounts should be considered one part of the solution to the global problem of growing health expenditures. It could be feasible to integrate certain elements of this concept into health care system of Georgia.