Medicare Medical Savings Account (MSA)
A Medicare Medical Savings Account is a special type of savings account where a Medicare Medical Savings Plan deposits money into your account. The Medicare MSA Plan combines this savings account with a high-deductible Medicare Advantage Plan to pay for health care costs. The money saved in this account can be used to pay for health care costs before you meet the deductible. Once you meet the deductible the Medicare Advantage Plan will begin to cover your health care costs.
Frederick had $10,000 in his Medical Savings Account, which came in handy when he developed a serious illness.