Certified Financial Consultant (CFC) Practice Exam

What is the minimum number of employees in a group for a medical savings account to qualify?

1. 10 employees

2. 20 employees

3. 23 employees

4. 50 employees

The correct answer is: 23 employees

To qualify for a medical savings account (MSA), there is a specific requirement regarding the minimum number of employees in a group. For MSAs, particularly those related to small employers, the minimum number of employees typically recognized is 50, according to various guidelines. However, in some cases, such as for specific small group policies, there might be variations. In this context, the correct understanding is that the requirement generally stipulates at least 50 employees. Thus, this aligns with the proper legislative definitions surrounding medical savings accounts designed for business groups. The choice indicating 23 employees is not consistent with the broader legal framework governing MSAs. In examining the other options, while 10, 20, and 50 are potential figures, the regulatory compliance and the structural setup for MSAs require a minimum of 50 employees to ensure that the intended purpose and criteria are met for the plan to be recognized under applicable law and regulations. Therefore, looking at the definitions and the intended function of the medical savings account, it becomes evident that the essential criterion regarding employee count underscores the clustering of risk and enabling group supported funding mechanisms that an MSA aims to achieve. In summary, the established requirement emphasizes the need for a minimum of 50 employees