How Do MSAs Work for Employers?
Major
MedicalEmployee
Savings
AccountEmployer
SavingsPurchase Major
Medical with a
higher deductible
that provides 100
percent coverage
after the deductible
is met.Provide an MSA
to be used for minor
and routine claims.
Employees keep any
money left at the end
of the year.Combining high
deductible insurance
with MSAs saves
money.• Cost Control: Employees become active partners in controlling health care costs. Employers benefit from stabilized costs and improved predictability of the cost of health insurance premiums.
• Employee Satisfaction: MSAs are a tool for employee empowerment. Employers may expect increased employee satisfaction, less sick pay leave and greater productivity. About 85 percent of employees will experience increased compensation each year, at no added cost to the employer.
Source: Evergreen Freedom Foundation u
Return to More on MSAs
