Medicare Medical Savings Account (MSA) plans are private companies that the federal government pays for the administration of Medicare benefits. Like all Medicare Advantage plans, MSA plans must provide you with the same benefits, rights, and protections as Original Medicare, but they can do so with different rules, restrictions, and costs. Some MSAs offer additional benefits, such as vision and hearing care. Unlike other Medicare Advantage plans, MSA plans include both a Highly Deductible Health Plan (HDHP) and a bank account to pay for your medical expenses. The MSA is funded by Medicare, which pays the private insurer to open the account and deposit the funds. You pay a Medicare Part B premium and do not contribute to the MSA. The Medicare Advantage High Deductible Associated Health Plan (HDHP) must provide the same benefits, rights, and protections as Medicare Original, though each plan operates under different costs, rules, and restrictions. Medicare Medical Savings Account (MSA) plans must provide you with the same benefits as Original Medicare, but may have different rules, restrictions, and costs. MSA plans may also offer additional benefits. Below is a list of general cost and coverage rules for MSA plans. Don`t forget to speak to a plan representative to find out the details of each plan you`re considering. Although most Medicare Advantage plans are eligible for anyone who reaches age 65 or under 65 and receives disability benefits through Social Security or the Railroad Retirement Board (RRB), Medicare MSA eligibility rules exclude certain individuals.
You are not eligible for a Medicare MSA plan if you: As a licensed insurance agent for seniors in Arizona and New Mexico, Elledge has helped thousands of people decode the intricacies of Medicare rules and regulations so they can make informed choices for their health care needs. As a world traveler with his wife Shelli, Elledge specializes in health insurance for expats and frequent travelers. He is aware of Medicare regulations, coverage options, and registration protocols, and is passionately committed to presenting reliable data on this confusing and often maligned program. You can`t deposit your own money into a Medicare MSA. Funds withdrawn and used to pay for ineligible expenses will be taxed and a penalty will also be imposed. If you choose a plan that provides vision care, dental or hearing care, you`ll pay a premium for these additional benefits, as well as a Medicare Part D prescription plan. The high deductible is a key feature of Medicare MSA plans. The annual deductible may be greater than the amount Medicare allocates to deposit into the savings account. You must be able to cover the difference if you use all the money in the savings account before the deductible is reached. Savings account withdrawals used to pay for services covered by the plan will count towards the deductible. You can use the funds for other eligible medical expenses, but these amounts do not apply to the deductible.
HDHP have significant deductibles that you must meet before getting coverage. This means that if you have an HDHP, you will pay in full for most health services until you reach your deductible for the year. After that, the HDHP will cover all your costs for the rest of the year. Make an appointment with a licensed insurance agent/producer near you Medicare MSA plans may offer vision, dental, and hearing services for an additional premium, but do not offer prescription drugs. You can purchase Medicare Part D coverage. Increase your Medicare expertise with reliable, up-to-date news and information delivered to your inbox every month. 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. While an MSA plan may offer savings, few Medicare participants benefit from it. Medicare MSA enrollment is estimated at just 6,000 of the 22 million people who signed up for Medicare Advantage plans in 2019.
MSA plans are not available everywhere, and plans are often not well understood. Read on to find answers to your questions about an MSA. “By getting reliable details on how to read their health insurance options, beneficiaries can plan properly and make the best decisions,” says Elledge. These decisions often make a huge financial and emotional difference in their future. When used correctly, Medicare becomes a powerful financial and medical tool for anyone who qualifies. Check with the plans in your area for more information on additional benefits, if any, they cover. The savings account portion of a Medicare MSA plan is self-managed, just like any other bank savings account. One key difference is that the account is funded with Medicare money compared to you. Expenses that are not attributable to the deductible include benefits not covered by Parts A and B of Medicare, such as: This type of Medicare plan can be more complicated to set up.
It`s best to work with a Medicare broker or licensed agent who is familiar with this type of plan to help you navigate the registry. Medicare MSA plans can offer freedom of choice to people who want more control over their health care spending and decisions. On the other hand, participants need to understand how the savings account and deductible work, manage their own medical bills, and keep good records of health expenses. Learn more about the basic steps for using a Medicare MSA plan. Medicare Consultant and Expert, Senior Counsel and Author Is an MSA Medicare Plan Right for You? Understand the options and details of your plan. A Medicare Medical Savings Account (MSA) plan is a special type of Medicare Advantage (Part C) plan. This type of plan can provide freedom of choice for people who want more control over their health care spending and decisions. And with freedom comes certain responsibilities. MSA plans can have vendor networks.
You can pay less for your care if you use networked providers or facilities. All MSA plans must also cover out-of-network care, but you may pay higher costs. MSA plans are included in the Medicare Advantage registration plan and are limited to a certain period of time. Medicare works with private insurance companies to provide you with ways to get your health insurance. These companies may choose to offer a consumer-focused Medicare Advantage plan, called the Medicare MSA plan. These plans are similar to the health savings account plans available outside of Medicare. You can choose your health care services and providers (MSA plans typically don`t have a network of doctors, other health care providers, or hospitals). MSA Medicare plans are not available everywhere. Call 1-800-MEDICARE or your Health Insurance Assistance Program (SHIP) to find out if an MSA plan is available in your area.
To enroll in an MSA plan, call Medicare or the plan directly. Make sure you make an informed decision by contacting a plan representative to ask questions before registering. In exchange for these higher expenses, an amount of money is deposited into your MSA at the beginning of the coverage year. If you do not use these funds for medical expenses by the end of the year, you can carry the funds forward to the following year. There are two important parts of an MSA Medicare plan. Funds paid into the plan are not taxable as long as you use them to pay for eligible medical expenses. You can carry over unused funds to the following year and earn interest. However, if you use funds for ineligible expenses, you will pay both income tax and a 50% penalty. UnitedHealthcare`s Medicare Made Clear offers Medicare training to help you make informed decisions about your health and Medicare coverage.
