Medicare Medical Savings Account Plans

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Plans sold by insurance providers recognized by Medicare are known as Medicare Medical Savings Account (MSA) plans.  You must receive the same fundamental protection from MSA plans as you would from Original Medicare.   However, these programs also provide further advantages.

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How does a Medicare Medical Savings Account work?

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High deductible health plans (HDHP) and bank accounts are included with MSA plans to assist you in covering your medical expenses.

HDHPs have a high deductible that must be fully paid before you are eligible for coverage, as you may have inferred. The HDHP pays all of your expenses for the rest of the year when the deductible is satisfied.

As previously mentioned, MSA plans also provide a bank account into which the plan provider deposits money annually for your medical costs. These monies can be used to cover the deductible. The plan provider's contribution, nevertheless, is less than the deductible.

Additional significant information on MSA plans:

• If money is contributed to an MSA plan and utilized for eligible medical costs, there is no tax due.

• Additional funds cannot be individually deposited in your MSA bank account. You pay out-of-pocket until the deductible is met after using up all the funds in the account.

• If there is any money left over in the account at the end of the year, it will be carried over to the following year.

• You must continue to be enrolled in Medicare Parts A and B in order to be in an MSA plan.

• Usually, these plans have provider networks. They must pay for out-of-network care, but you might have to pay more.​

• Prescription drug coverage under Part D is not permitted in MSA plans. You must sign up for a stand-alone Part D plan if you want coverage for prescription medications.

• The prescription drug plan's out-of-pocket expenses do not count toward your MSA plan's deductible if you decide to enroll in a Part D plan.

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What do MSA plans cover?

A specific kind of Medicare Advantage plan is a Medicare Medical Savings Account.  This indicates that it provides extra benefits not included in Original Medicare.

These advantages could include:

• Daycare services for adults

• Dental

• Fitness subscriptions

• Hearing

• nutrition education

• nonprescription medications

• Supports and services for people with long-term conditions

• transport to medical appointments

• Vision

• wellness initiatives

 

The benefits for which you qualify depend on your location and the providers of your plan.

It is significant to note that any out-of-pocket spending for these extra benefits qualify as medical expenses and do not apply to your deductible.