Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An Archer Medical Savings Account (MSA) is available to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The Archer MSA is a predecessor to the HSA and is limited to two groups: self-employed individuals and employees of small employers who purchase a qualifying high-deductible health plan. Money in the MSA can accumulate tax-free and be used to pay qualified medical expenses. Because the product is a consumer-driven health plan option studied under AH-III.A.1b, the exam tests which populations are eligible and how the high-deductible requirement anchors the arrangement's tax treatment.
Why the other options are wrong
- B) Archer MSAs are not a Medicare benefit; Medicare beneficiaries use Part A/B/C/D or Medigap instead.
- C) A low-deductible PPO does not satisfy the high-deductible plan requirement, and the MSA was not designed for employees of large employers.
- D) Eligibility is restricted to the self-employed or employees of small employers with an eligible high-deductible plan, not to every taxpayer.
Memory hook
Archer MSA: small employer or self-employed plus high deductible, that is it.