It also does not include contributions to Archer MSAs
, health savings accounts or health reimbursement accounts.
Employees need a prescription to be reimbursed for over-the-counter medications and supplies run through their health FSAs, HRAs, HSAs and Archer MSAs
At the same time, PPACA increases the tax on distributions from a health savings account or an Archer MSA
that are not used for qualified medical expenses to 20% (from 10% for HSAs and from 15% for Archer MSAs
) of the disbursed amount.
Health Related Employer Reimbursements and HSA Deductions: Eligible medical expenses will be restricted to insulin and prescribed medicines or drugs for reimbursements under employer-provided health flexible spending accounts (FSAs) and health reimbursement arrangements as well as for deductions under HSAs and Archer MSAs
220, added by the Health Insurance Portability and Accountability Act of 1996, allows employees of small employers and self-employed individuals to establish Archer MSAs
to help pay for medical expenses in conjunction with a high-deductible health plan.
Prior to HSAs, Congress created medical savings accounts, subsequently renamed Archer MSAs
The Archer MSAs
, however, were limited to small businesses and the self-employed.
Sticker shock" has hit conventional small-business group insurance policies especially hard in 2001, which makes Archer MSAs
all the more attractive.
Refunds can fund several kinds of accounts, including checking, savings, individual development accounts, IRAs (traditional, Roth and SEP), health savings accounts, Archer MSAs
, and Coverdell education savings accounts.
Eligible tax-favored accounts include traditional and Roth IRAs, health savings accounts, Archer MSAs
, Cover-dell education savings accounts and qualified tuition programs, also known as QTPs or 529 plans.
Cash or property contributions may be rolled over into an HSA from Archer MSAs
and other HSAs.
For small groups and self-employed individuals, the new HSA accounts replace Archer MSAs