A medical savings account (MSA) is an account into which tax-deferred amounts from income can be deposited. The amounts are often called contributions and may be made by a worker, an employer, or both, depending on a country's laws.
The money in such accounts is to be used to pay for medical expenses. Withdrawals from the account often called distributions, if made for that reason, may or may not be subject to income tax. Withdrawals without adequate documentation of use for medical expenses are subject to penalties.
In China
In December 1994, the People's Republic of China began a pilot study of medical savings accounts in the cities of Zhenjiang and Jiujiang. China has planned to expand the program.
- Medical savings account (started 1993, still prevalent in California)
- Health savings account (created 2003, supersedes MSAs, more widely available)
See also
- Health care system
- Health policy