Section 71-9-5 - Authority to establish medical savings account; limits on deductible amounts contributed to account; interest earned on account excluded from gross income(1) Each employer shall be permitted to offer voluntarily the following programs: (a) Continued coverage under the employer's existing health coverage policy, certificate or contract; or(b) Participation in a medical savings account program.(2) An employer that previously did not provide an accident and health insurance policy, certificate or contract for his or her employees may establish a medical savings account program. In this case, the premium reduction referred to in Section 71-9-3(j)(ii) shall be based on the cost of similar coverage with a Five Hundred Dollar ($500.00) deductible.(3) A resident individual may establish a medical savings account for the benefit of himself or herself and his or her dependents. Contributions to a medical savings account established by a resident individual for a tax year shall not exceed the allowable deductible for a qualified higher deductible health plan.(4) Except as otherwise provided by law, the principal contributed and the interest earned on a medical savings account shall be excluded from the taxable gross income of the account holder under Section 27-7-15.Laws, 1994, ch. 468, § 3; reenacted without change, Laws, 1997, ch. 606, § 5, eff. 4/24/1997.