A four year test program to demonstrate the viability of Medical Savings Accounts (MSA’s).
Those eligible are the self-employed, firms with 50 or fewer employees (workforce can increase to 200 without losing eligibility) and those without insurance.
Eligibility began January 1, 1997
A cap of 750,000 plans.
Cap enforced by the IRS. Plans will no longer be offered after October 1st 1997, earlier cutoff date could be enacted.
Catastrophic polices accompanying the MSA's must have deductibles in the range of $1500 to $2250 for individuals, and $3000 to $4500 for families.(2x per family) Out of pocket expenses can not exceed $3000 for
individuals and $5500 for families.
Annual contributions to the MSA will be limited to 65% of the deductible for individuals and 75% for families.
A 15% penalty would apply to funds withdrawn from the savings account, prior to age 65, and used for non-medical purposes, except in the case of death or disability.
Those participating in MSA's will be able to keep their MSA's after the four years with the same exceptions applicable for groups.
The information contained in this web may contain generalities or inaccuracies. Please read the brochures and policies for
specific limitations and exclusions and applicable rules.
