With a medical savings account (MSA) you divide the money you would normally spend on full coverage health insurance into two parts.
PART ONE is used to buy much lower cost medical insurance to cover big medical bills, for instance bills above $4,600.
PART TWO is used to put into a personal savings account and used to pay out-of-pocket medical expenses. Out-of-pocket expenses become tax exempt when paid from the MSA. What you don’t spend is yours to keep, adding tax-exempt interest.
