Medical Savings Accounts (MSAs) and Health Savings Accounts (HSAs) both give consumers tax-advantaged ways to fund healthcare costs.
What is an HSA?
A Health Savings Account, or HSA plan, allows individuals to put aside pre-tax dollars into an account to assist in paying for qualified medical expenses. By using the pre-tax money set aside in the account, you can lower your overall health care costs.
You can only contribute to an HSA if you are enrolled in a High Deductible Health Plan (HDHP). HDHPs generally have a lower premium but you pay more out-of-pocket health care costs before the policy pays its share. You cannot contribute to an HSA if you are covered by a Medicare plan or have a plan that pays its share of expenses without you having to pay deductibles or copays.
What is an MSA?
Medical Savings Accounts take the place of Heath Savings Accounts for Medicare recipients, because they can’t have HSAs. They combine a High Deductible Health Plan with a medical savings account.
What is the difference between an MSA and HSA?
Medical Savings Accounts are only available to people enrolled in high-deductible Medicare plans, whereas Health Savings Accounts are restricted to people enrolled in high-deductible private insurance plans.
Tax Year 2024
| Annual Deductible Required | Annual Out-of-Pocket Limit | Annual Contribution Limit | Who can make a contribution? | |
| HSA - Individual | At least $1,600 | $8,050 |
$4,150 $5,150 (if over the age of 55) |
Both the Employee and the Employer |
| HSA - Family | At least $3,200 | $16,100 |
$8,300 $9,300 (if over the age of 55) |
Both the Employee and the Employer |
| MSA - Individual | At least $2,800 | $5,550 | up to 75% of the annual deductible | Employer or Employee |
| MSA - Family | At least $5,550 | $10,200 | up to 75% of the annual deductible | Employer or Employee |
Tax Year 2023
| Annual Deductible Required | Annual Out-of-Pocket Limit | Annual Contribution Limit | Who can make a contribution? | |
| HSA - Individual | At least $1,500 | $7,500 |
$3,850 $4,850 (if over the age of 55) |
Both the Employee and the Employer |
| HSA - Family | At least $3,000 | $15,000 |
$7,750 $8,750 (if over the age of 55) |
Both the Employee and the Employer |
| MSA - Individual | At least $2,650 | $5,300 | up to 75% of the annual deductible | Employer or Employee |
| MSA - Family | At least $5,300 | $9,650 | up to 75% of the annual deductible | Employer or Employee |
Tax Year 2022
| Annual Deductible Required | Annual Out-of-Pocket Limit | Annual Contribution Limit | Who can make a contribution? | |
| HSA - Individual | At least $1,400 | $7,050 |
$3,650 $4,650 (if over the age of 55) |
Both the Employee and the Employer |
| HSA - Family | At least $2,800 | $14,100 |
$7,300 $8,300 (if over the age of 55) |
Both the Employee and the Employer |
| MSA - Individual | At least $2,450 | $4,950 | up to 75% of the annual deductible | Employer or Employee |
| MSA - Family | At least $4,950 | $9,050 | up to 75% of the annual deductible | Employer or Employee |
Tax Year 2021
| Annual Deductible Required | Annual Out-of-Pocket Limit | Annual Contribution Limit | Who can make a contribution? | |
| HSA - Individual |
At least $1,400 |
$7,000 |
$3,600 $4,600 (if over the age of 55) |
Both the Employee and the Employer |
| HSA - Family | At least $2,800 | $14,000 |
$7,200 $8,200 (if over the age of 55) |
Both the Employee and the Employer |
| MSA - Individual | $2,400-$3,600 | $4,800 | up to 65% of the annual deductible | Employer or Employee |
| MSA - Family | $4,800-$7,150 | $8,750 | up to 75% of the annual deductible | Employer or Employee |
You can find more information on HSA and MSA here.