Medical Savings Accounts (MSA) - Health Insurance Definition
Medical Savings Accounts are a
relatively new option and one that is catching
on in some places. The idea is to put money aside
to pay for doctors, medicines and even tests.
The plan works much like any other savings account.
The difference is that you’re not looking
ahead to a vacation or Christmas shopping spree
with the money, you’re actually looking
ahead to a time when the money in that account
can make a huge difference.
Unfortunately, illness doesn’t need an
appointment. It’d be easier to handle if
you knew you were going to have the flu on February
13, but there’s no way to make that prediction.
You can create a medical savings account now so
that you’re ready when you do become ill.
For most people, the cost of the doctor’s
visit added to the cost of prescriptions is bad
enough, but they’ll also be taking time
off work - another expense at a time when all
the money is flowing out while nothing is coming
in. That’s why a medical savings account
makes so much sense.
As a rule, medical savings accounts are established
by small businesses to pay any and all out-of-pocket
medical costs. If you’re considering starting
this type of account, you’ll likely need
an administrative
services only company to set up and oversee
the account. If you’re in doubt of how to
get started, talk to your insurance broker
for advice. |
