This is a refreshing notion in an industry that has long been like a fancy restaurant where the consumer, as a guest, orders off a menu without seeing the prices attached. In addition, if your employees are healthy, having a medical savings account can mean that your company will no longer be paying insurers for health care coverage it does not really need. The MSA will not always be the lowest cost option in your area. Shop all options when assessing health care coverage. Be careful when choosing a high-deductible insurance policy.
Insurers define coverable medical expenses differently.
Make sure employees do not become overly budget-conscious. Employees should be encouraged to have regular examinations even if it means a few hundred dollars less for their account. Instead,this experiment allows participants to have their unused MSA funds grow tax-free, much like an individual retirement account. Upon retirement, these funds can be withdrawn without penalty. For the healthy, this means there can be a considerable amount of savings to be had.