What are the advantages of HSAs?
HSAs have lower deductible requirements and higher out-of-pocket limits than MSAs, making the accounts more flexible and accessible. HSAs have separate out-of-pocket maximum for services provided outside the network. HSAs, unlike MSAs, may be offered as part of an employer’s cafeteria plan. HSA contribution limits are greater than MSAs. An employer and employee are both permitted to contribute to an HSA in the same year. HSAs allow “catch-up” contributions for persons between the ages of 55 and 65.
