Medicare MSA Plans

Part C Medicare Advantage Plans

Medicare MSA plans- Happy Couple LaughingPart C Medicare Advantage plans provide private health insurance for millions of Medicare beneficiaries. One option for Advantage beneficiaries is to enroll in a Medicare medical savings account (MSA) plan, which consists of two different parts: a high deductible health insurance plan and a savings account with money that you can use for your health care costs. Although MSA plans differ from original Medicare plans, you will receive the same benefits that you would have received under Part A and Part B.

The high-deductible health plan in which you enroll for your MSA will start to cover your monthly costs after you reach your yearly deductible. The deductible itself varies by plan. The other part of the MSA plan is a savings account. The Advantage plan you choose will deposit money into your health account, which you can use to pay for health services before you hit the deductible. Only the Advantage plan can deposit money into your MSA, and extra benefits, like vision, dental, and long term care, may be available for an extra charge.

Setting Up a MSA

You will set up your MSA with a bank chosen by the Advantage plan. Medicare gives the plan money every year to pay for your health care. You can use the plan money to pay for medical expenses, although only Medicare Part A and B services count towards your deductible. When you pay out-of-pocket for your health services, providers are not allowed to charge you more than the Medicare approved amount. The plan you choose will have a high deductible, so you will not have to pay a monthly premium. However, you are responsible to pay for your health care costs up to the yearly deductible.

Prescription Drugs and MSAs

Medical savings accounts do not cover prescription drugs, so you must add Medicare prescription drug plans if you want your medications covered. You are also able to keep your Medigap policy, but you will need to continue paying your monthly premiums. You also cannot have additional insurance that covers up to the yearly deductible. The medical savings account cannot restrict your access to health care providers, but you should also make sure that the plan will pay for the services you need.

Medicare MSA Elgibility

You are eligible to enroll in a Medicare Advantage medical savings account if you are entitled to Part A and Part B Medicare. If you already have insurance that will cover the deductible, receive benefits from the Department of Defense or Veteran’s Affairs, or are eligible for Medicaid, you are not eligible for an MSA. Additionally, if you are in a hospice or have been diagnosed with end stage renal disease, you do not qualify for an Advantage MSA. If you are eligible for a Medicare medical savings account, you can enroll during both the initial enrollment and open enrollment periods.

For More Information

Medicare MSA plans offer many choices for Medicare-approved private health insurance. Benefits and deductibles vary from plan to plan, so it is important to understand the plan you choose in order to meet your individual health care needs. If you would like more information about Advantage plans, please look around the Medicare Solutions website or call to speak to one of our trained Medicare specialists.