Medical Savings Accounts & TPAs

[Guest mjm2950]

I'm a broker in Denver CO. There are no fully insured group msa's available in CO. Does anyone know of a TPA who does a self funded msa plan or would be willing to start? ie. a qualified high deductible medical plan. I spoke to one local tpa who did not want to go through the effort of administering it. I have business clients who want a group msa product, but I can't deliver one.

Thanks

[GBurns]

Is such a thing as a group MSA (insured or self-insured) allowed?

[Guest mjm2950]

Yes, groups under 50 employees can have a qualified group msa. Unfortunately in CO, MD and a few other states there are no group carriers offering a fully insured group msa policy. That is why I am looking for a tpa who will set a group self funded version up for me. If you live in a state that allows group msa I would give them a good look.

[GBurns]

I have been unable to find such a thing as a group MSA in the law, on the internet or by asking some of the providers. No one and nothing shows a group MSA.

An MSA is not the insurance plan. It is a tax-exempt trust or custodial account in which you can save money for furure medical expenses. The account must be used in conjunction with a HDHP ( a high deductible health plan). This is as per IRS pub. 969.

It is the HDHP that can be a group plan not the MSA. There is also no such thing as an MSA policy, there are only policies that can be used with MSAs.

The problem, therefore, is finding a group health plan with the required high deductible. Since most insurance plans for small groups are pre-filed shelf products, that should be difficult. Products for larger groups are often custom designed and could have a high enough deductible.

[Guest mjm2950]

Thanks

You are right. What I meant by MSA was the high deductible qualified insurance plan, not the funding account. The funding account can be placed in many places, brokerage firms, banks. I don't really care. The insurance plan is the problem. That is why I will need to self fund. I spoke to a tpa today who believes they can design a qualified high deductible health plan. Will call more tpa's tomorrow. So it looks like I may get what I need.