What is a Medicare MSA?

A Medicare Medical Savings Account (MSA) Plan is a type of Medicare Advantage plan that combines a high-deductible health plan with a medical savings account. This savings account is used to help you pay for your health care needs throughout the year until you reach your deductible; once the deductible is reached, you are covered by the insurance plan.

A Medicare Medical Savings Account allows you to take control over your health care utilization, while still protecting yourself against the expenses of a catastrophic event.

Who can enroll for a Medicare MSA?

If you’re eligible for both Medicare Part A and Part B, you are eligible to enroll in an MSA plan. You can enroll as soon as you turn 65 or first become eligible to enroll, or between November 15 and December 31 of each year. Enrollees can also disenroll during this time.

There is no premium with an MSA plan–just pay your monthly Medicare Part B premiums to Medicare.

How Does it Work?

Your MSA is divided into two parts: a savings account and a high-deductible health plan.

Your Savings Account

Your Medicare MSA plan includes a special type of savings account which is used to pay for any qualified medical expenses. Your plan is funded by Medicare, which pays a set amount to plan providers. This money is deposited into your savings account at the beginning of each year.

Any money that isn’t withdrawn during the year will remain in the savings account if you choose to keep your plan.

High-Deductible Health Plan

The second part of your Medicare MSA plan is a high-deductible Medicare Advantage Plan that covers all Medicare Part A and Part B services. Once you’ve reached your yearly deductible, this plan will cover all Medicare Part A and Part B expenses.

Will my MSA cover prescription drugs?

Medicare Medical Savings Account plans typically do not offer prescription drug coverage; however, you can opt into a stand-alone Medicare prescription drug plan (PDP).

Prescription medicine bottle.

Are there other benefits?

Your Medicare MSA plan may include:

  • Information services to help you find the best costs and the right providers for your health care needs.
  • Demonstration plans may provide coverage for preventive services before you reach your deductible.
  • Coverage for additional benefits, including vision, hearing, or dental at an additional cost.

How do I enroll for a Medicare MSA?

Is a Medicare Medical Savings Account right for you?

Get in touch with an agent and get coverage today!

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