Roger Stewart is a true believer in medical savings accounts (MSAs). Stewart, who is president and partner at FJR Manufacturing, a small West Bend, Wisconsin, machinery manufacturer, was suffering from health-care shock brought on by yearly insurance premium hikes. In his search for an alternative way to pay for health coverage, Stewart discovered MSAs.
All the company's partners, as well as its 20 employees, have MSAs now. "I think they're the best thing since the wheel,' says Stewart. The company made the switch about eight months ago, and Stewart says everyone is especially happy with the tax and savings benefits MSAs provide. The premiums FJR pays to the insurance companies for MSAs are less than what it paid for traditional medical insurance, and Stewart believes his employees are getting more out of the plan.
Joan Szabo is a writer in Great Falls, Virginia, who has reported on tax issues for more than 12 years.