Medicare MSA Plan

Medicare Medical Savings Account (MSA) Plans

What is a Medicare MSA Plan?
Medicare works with private insurance companies to offer you ways to get your health care coverage. These companies can choose to offer a consumer-directed Medicare Advantage Plan, called a Medicare MSA Plan. These plans are similar to Health Savings Account Plans available outside of Medicare. You can choose your health care services and providers.

Medicare MSA Plans have 2 parts

  1. Medicare MSA Plans combine a high-deductible insurance plan with a medical savings account that you can use to pay for your health care costs.
    High-deductible health plan: The first part is a special type of high-deductible Medicare Advantage Plan (Part C) . The plan will only begin to cover your costs once you meet a high yearly deductible, which varies by plan.
  2. Medical Savings Account (MSA): The second part is a special type of savings account. The Medicare MSA Plan deposits money into your account. You can use money from this savings account to pay your health care costs before you meet the deductible.

How do MSA Plans work?

10 steps to use a Medicare MSA Plan

  1. Choose and join a high-deductible Medicare MSA Plan.
  2. You set up an MSA with a bank the plan selects.
  3. Medicare gives the plan an amount of money each year for your health care.
  4. The plan deposits some money into your account.
  5. You can use the money in your account to pay your health care costs, including health care costs that are not covered by Medicare. When you use account money for Medicare-covered Part A and Part B services, it counts towards your plan’s deductible .
  6. If you use all of the money in your account and you have additional health care costs, you will have to pay for your Medicare-covered services out-of-pocket until you reach your plan’s deductible.
  7. During the time you are paying out-of-pocket for services before the deductible is met, doctors and other providers cannot charge you more than the Medicare-approved amount.
  8. After you reach your deductible, your plan will cover your Medicare-covered services. Read information from the plan for details about out-of-pocket costs .
  9. Money left in your account at the end of the year stays in the account and may be used for health care costs in future years.
  10. If you use funds from your account, you must include a special IRS Tax Form 8853 with information on how you used your account money when you file taxes.

What’s covered?

  • Medicare MSA plans cover the Medicare services that all Medicare Advantage Plans must cover. In addition, some Medicare MSA plans may cover extra benefits for an extra cost, like:
  • Dental
  • Vision
  • Long-term care not covered by Medicare
    We will contact plans in your area for more information on what extra benefits they cover if any

Medicare MSA Plans do not cover Medicare Part D prescription drugs
If you join a Medicare MSA Plan and need drug coverage, you will have to join a Medicare Prescription Drug Plan.