New Jersey

SMALL EMPLOYER HEALTH COVERAGE PROGRAM

20 West State Street, 10th Floor

P.O. Box 325

Trenton, NJ 08625

Phone: 609-984-1717

Fax: 609-633-2030

 

NOTE ON HIGH DEDUCTIBLE PLAN OPTIONS FOR USE WITH

MEDICAL SAVINGS ACCOUNTS

 

In the summer of 1996, the federal government enacted the Health Insurance Portability and Accountability Act of 1996 (P.L. 104-204) which established a national pilot program that allows up to 750,000 enrollees in tax deductible medical savings accounts or "MSAs."

 

An MSA is an account held in trust for the account holder. The employer or the employee makes annual tax-free contributions to the account that must be maintained in conjunction with a high deductible health insurance policy. The employee can draw on the account to pay for qualified medical expenses not covered by their health insurance policy or leave the funds to accumulate on a tax-free basis.

 

Employees of small employers (2-50 employees) who are covered by employer-sponsored high deductible plans, and are not covered by other health plans (with some exceptions), are eligible.

 

If you are interested in establishing an MSA account as a self-employed individual for you and your family, please call (800) 838-0935 for a copy of the Individual Health Coverage Program Buyer’s Guide and rate sheet. The rate sheet will include an up-to-date listing of all carriers offering high deductible plan options for use with MSAs.

 

If you are interested in establishing an MSA account, the SEH Board suggests that you contact a tax consultant or accountant for more information about the tax consequences of MSAs. In addition, you may contact a broker, or the following small employer carriers which have received approval from the Department of Banking and Insurance to offer high deductible plan options to small employers.

 

Carrier

Toll-free Number

Anthem Health & Life

888-604-2200 or 888-326-8436

Horizon Blue Cross Blue Shield of New Jersey

800-682-7694