Medical savings account (MSA)

What is Medical savings account (MSA)?

‘Medical Savings Account’ or ‘MSA’ is a kind of savings account in the US, which enables the staff who have enrolled in high deductible health plans (HDHP), to save taxes while investing on health as these funds can be used to pay medical bills.

If any funds are left over after all the medical bills have been paid for a particular year, the remaining amount can be encashed. However, these funds are taxable.

The MSA has been replaced by the HSA, which even provides the employee with a credit card for easily paying the medical expenses. Unlike MSA, HSAs can be kept in multiple savings accounts. Hence, it is one of the best savings plans available to an US employee.

More HR Terms

Workplace Gossip

What is Workplace Gossip?   ‘Workplace Gossip’ refers to gossip or informal communication between employees that are negatively focused on other employees’ lives. It is

Satisficing

What is Satisficing?   ‘Satisficing’ is a neologism of ‘satisfy’ and ‘suffice’, which refers to a decision making process that aims to satisfy all parties

Enterprise Resource Planning (ERP)

What is Enterprise Resource Planning (ERP)?   ‘Enterprise Resource Planning’ refers to an all-encompassing software that provides the workflow and related metrics to the various

Contact Us

Contact Us

We use cookies on our website to provide you with the best experience.
Take a look at our ‘privacy policy’