Which group is NOT eligible to use a medical savings account?

The eligibility for medical savings accounts (MSAs) is designed to cater to specific groups that can manage their healthcare costs while encouraging cost-effectiveness and preventive care. Large corporate entities typically have a more robust health insurance infrastructure and access to traditional employer-sponsored health plans. As such, they are generally not eligible to use medical savings accounts since these accounts are intended to assist smaller groups or individual self-employed persons in managing their healthcare expenses more effectively.

Self-employed individuals, groups of 50 or fewer employees, and small businesses can utilize MSAs as a way to provide tax-advantaged savings for medical expenses, allowing them to have more control over their healthcare spending. In contrast, large corporate entities usually offer comprehensive health benefits that do not align with the purpose of MSAs, which is primarily to serve smaller, less-resourced groups who might benefit from more tailored savings mechanisms for medical care.