DEFINITION of 'Medical Savings Account - MSA'

A medical plan combining high-deductible medical insurance protection with a tax-deferred savings account that can be offered by employers as part of a benefits package. Medical savings accounts are designed to help participants pay for medical and healthcare expenses by allowing them to save for those expenses in a tax-sheltered environment. Participants pay healthcare expenses from this account up to the amount of the insurance deductible.

Also known as "Archer medical savings accounts" or "Archer MSAs."

BREAKING DOWN 'Medical Savings Account - MSA'

Archer MSAs cannot be established after 2007 and have been replaced by health savings accounts (HSAs), which were introduced in 2003. However, MSAs already established can continue to accept new contributions. MSAs can also be rolled over into HSAs, but no new contributions can be made once the account holder becomes eligible for Medicare.

RELATED TERMS
  1. Health Savings Account - HSA

    An account created for individuals who are covered under high-deductible ...
  2. Blanket Medical Expense

    An insurance policy which provides coverage for all medical expenses ...
  3. Savings Account

    A deposit account held at a bank or other financial institution ...
  4. Medical Cost Ratio

    A comparison of a health insurance company's healthcare costs ...
  5. Healthcare Sector

    A category of stocks relating to medical and healthcare goods ...
  6. Flexible Spending Account - FSA

    A type of savings account available in the United States that ...
Related Articles
  1. Insurance

    Health-y Savings Accounts

    HSAs can provide a new way to save for retirement and medical expenses.
  2. Financial Advisor

    Why Clients Should Save More for Medical Expenses

    Here's how to approach clients to get them to save more toward medical expenses in retirement, which continue to grow.
  3. Insurance

    Customers And Business Owners Turning To HSAs

    We tell you why more and more businesses are getting rid of PPOs in favor of HSAs.
  4. Insurance

    Rules For Having A Health Savings Account (HSA)

    Do you qualify? What does it cover? How to see if it makes sense to sign up for a High-Deductible Health Plan with a Health Savings Account.
  5. Insurance

    5 Alternatives to Traditional Health Insurance

    Discover five of the most popular alternatives to traditional health insurance plans, alternatives that are increasingly popular as health insurance costs rise.
  6. Managing Wealth

    This Is Why HSAs Appeal to High-Income Earners

    Health Savings Accounts are a good deal. But they're a better deal for some than for others. We parse how the plans work – and who benefits the most.
  7. Insurance

    HSAs Could Get a Boost Under Trump

    Health Savings Accounts may become more attractive under a Trump administration. Here's how.
  8. Insurance

    Health Savings Accounts: What You Need to Know

    The the popularity of Health Savings Accounts is on the rise. Here's how they work.
  9. Financial Advisor

    Forget 401(k)s: Put Your Next Savings Dollar Here

    A 401(k) might be the post popular option for retirement savings, but there is another lesser-known option that may make sense for many.
  10. Retirement

    How to Help Fund Your Retirement With an HSA

    Funding a health savings account for retirement can save thousands of dollars in taxes.
RELATED FAQS
  1. What are catch-up contributions for Health Savings Accounts (HSAs)?

    Learn about Health Savings Accounts (HSAs) and how an eligible individual of age 55 or older can make additional catch-up ... Read Answer >>
  2. What economic factors affect savings account rates?

    Find out how supply, demand and central bank policy all affect savings account rates offered by banks for extra deposits ... Read Answer >>
  3. What are the requirements for opening a savings account in the United States?

    Understand what information and documentation is necessary to open a savings account within the United States, and learn ... Read Answer >>
  4. Does a Flexible Spending Account (FSA) cover braces?

    Learn about Flexible Spending Accounts (FSAs) and how funds from these accounts can be used to cover costs associated with ... Read Answer >>
Hot Definitions
  1. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  6. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
Trading Center