BUSINESSWEEK ONLINE : JULY 10, 2000 ISSUE
FRONTIER -- FEATURES Remedy #1: Medical Savings Accounts HOW IT WORKS: MSAs combine a high-deductible health plan (the threshold can be as high as $4,600 for families) with a tax-deferred savings account similar to a 401(k) plan. The account is used to pay medical expenses not covered by the insurance. Employees get a tax break on funds deposited in the MSA, earnings don't count as income, and unused funds can roll over from year to year. MSA money can be invested in stocks and bonds. WHO IT'S FOR: Companies with fewer than 50 employees. WHERE IT'S OFFERED: All 50 states. A four-year trial program ends this year. Even if Congress doesn't reauthorize MSAs, companies that sign up now can keep using them. WHAT'S GOOD: You save 15% to 50% in premiums. WHAT'S NOT: Less attractive for older or sicker employees because of the higher out-of-pocket expenses. Since MSAs aren't being actively marketed, your local broker may not be able to help you find one. The complex concept requires employee education. WHERE TO GO: For a broker, check the National Association of Alternative Benefit Consultants (www.room100.com/msa). For an administrator, contact Msaver National Resource Center (888 367-6727), the major national player. For a directory of insurers and guide to MSAs, visit the Health Insurance Association of America's Web site at www.hiaa.org. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS The Health Care Crisis CHART: Ouch! The Nation's Smallest Companies Faced the Biggest Hikes in Health Care Premiums TABLE: Remedy #1: Medical Savings Accounts TABLE: Remedy #2: Self-Funding with Stop-Loss TABLE: Remedy #3: Split Funding TABLE: Remedy #4: Association Health Plans TABLE: Remedy #5: Consumer Choice Health Purchasing Group CHART: Who's Covered Commentary: Search for a Cure INTERACT E-Mail to Business Week Online

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