MSA (Medical Savings Account)
Medical savings accounts offer employers a way to help employees pay for health care expenses. An MSA operates like an individual savings account coupled with a health plan. The health plan would provide protection after satisfaction of a deductible. Reimbursement from the MSA acts as coinsurance for some or all of the participating employee's health expenses up to the level the health plan's coverage starts. Employer contributions to an MSA are tax deductible. Depending on an employee's state of residence the employee may have taxable income using the account to pay for health care.
