Medical Savings Accounts (MSA)

Published: | Updated: November 11, 2017

Definition - What does Medical Savings Accounts (MSA) mean?

A medical savings account (MSA) is an account that money can be deposited into and then used to pay for healthcare expenses. Money stored in MSAs are exempt from taxation.

Medical savings accounts are often used as part of high deductible health insurance plans.

Insuranceopedia explains Medical Savings Accounts (MSA)

Medical savings accounts are often offered by employers as a part of a healthcare benefit package. Many people will use the money in their MSAs to pay for medical expenses until they have reached the full limit of their deductible for the policy period. After those funds have been depleted, the insurance company handles expenses until the policy limit.

The main benefit of medical savings accounts is that their tax-exempt status allows health insurance policyholders save money.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.