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Mr. Chen has heard about a Medical Savings Account (MSA), but wants to know if it is just about saving money, or if he will get insurance coverage for his health care expenditures as well.

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Answer:

A  medical savings account (MSA) refers to a medical savings account program, generally associated with self-employed individuals, in which tax-deferred deposits can be made for medical expenses. Withdrawals from the MSA are tax-free if used to pay for qualified medical expenses.

Explanation:

Mr. Chen, Medical Savings Account, MSA does not involve insurance coverage. It covers only medical expenses.

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