Texas MSA Plans - Medical Savings Accounts

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Medical Savings Account - MSA Plans

Medical Savings Account have all been
converted to Health Savings Account

Medical Savings Accounts (MSA Plans) were discontinued after December 31st and were converted to Health Savings Accounts.

You can contribute more money to the HSA than you could an MSA plan. There are some additional differences that you can read about on our Texas HSA plan page.

Medical Savings Accounts versus Health Savings Accounts Benefits

1. Contributions can be100% of the deductible

2. You can make a lump sum contribution up to April 15 of the following year.

3. HSA funds can also be used to pay COBRA or other medical insurance premiums during periods of unemployment or temporary layoff

4. The penalty for premature withdrawal is 10% instead of 15%

5. You do not have to be self-employed

Texas MSA Similarities?

There are two basic parts to HSAs

1. Qualified High Deductible Health Plan (QHDHP) - One key element of HSAs is the requirement that a QHDHP be in place to cover the individual or family that would benefit under such account. Such a policy provides important health care benefits, but with a relatively modest premiums.

Remember that you cannot just add a health savings account to your current plan. These qualified plans must meet specific requirements. They cannot have physician or prescription co-pays and have certain maximum out-of-pocket dollar amounts.

2. Savings Account - A Health or Medical Savings Account is a tax exempt account with a financial institution in which you accumulate savings to pay for medical expenses. Contributions are tax deductible and income earned on funds in the HSA grow tax-deferred. An HSA allows you to enjoy tax reductions while having affordable premiums without risking your insurance protection. The account can be used for qualified medical expenses until the deductible has been met and insurance begins to kick in. Funds can also be used for dental, vision, and other services that may not be covered under the High deductible health insurance policy.

What may an HSA be used for?

Any medical expense that is defined under Section 213d of the IRS code (for a list of the qualified expenses go to page 4 of the IRS Publication 502) . Funds may be withdrawn penalty-free for other uses after the individual reaches age 65, or if death or disability occur.

We represent a number of different carriers and can help you find an HSA plan that will keep most of your insurance premium in your own pocket. Give us a call for a free instant quote and answers to all of your questions.

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