Medical savings accounts are a type of tax-exempt savings account available to employees and their dependents under the high deductible health plan. Under such programs, the enrollee is not covered by any health insurance while there are medical bills during the project period, except in case of catastrophic illness. However, the claim paid is based on the deductible set for that year. In other words, the employer uses HDHP as a form of employee compensation by giving a certain amount to pay the employees’ and their dependants’ health expenses. It means that the employers will save taxes as employees invest in health instead of saving for retirement or other purposes.