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
An Archer MSA is a tax-favored account tied to a qualifying high-deductible health plan, and it is available only to self-employed individuals or employees of small employers that sponsor an MSA-qualified plan. The high-deductible policy must meet federal requirements, and the account owner uses the funds to pay qualified medical expenses. This is one of the consumer-directed health arrangements listed with HRA, HDHP plus HSA, and FSA. The small-employer limitation is what distinguishes the Archer MSA from the more widely available HSA.
Why the other options are wrong
- B) Medicare beneficiaries do not receive Archer MSAs; Medicare's own accounts are structured separately and are not offered to everyone at 65.
- C) Employees of large employers generally do not qualify for an Archer MSA, which is restricted to the self-employed and small employers.
- D) The Part D coverage gap is a Medicare prescription drug phase, unrelated to Archer MSA eligibility.
Memory hook
Archer MSA = a niche arrow: self-employed or small-group only, always behind a high-deductible shield.