What is a Medical Medicare Savings Account?

Medical Medicare Savings Account (MSA) plans are one of the options of Medicare Advantage plans. MSA plans are a combination of a high-deductible health plan (HDHP) and a medical savings account (MSA). These plans offer the same coverage as all Medicare Advantage and Original Medicare plans, but with different rules and costs than other plans. Some Medicare MSA plans will also offer coverage for dental, vision, and long-term care outside of normal Medicare coverage.

Medical Medicare Savings Account Part 1: High-Deductible Health Plan

Part of an MSA plan is a high-deductible health plan

The high-deductible health plan portion of a Medical MSA is, in essence, a Medicare Advantage Plan Part C. A deductible is the amount where the plan begins covering healthcare costs. However, this means that until the deductible is reached, the subscriber must pay out-of-pocket expenses for their health care. This means that the subscriber will pay more upfront than with another plan.

The advantage of a high-deductible health plan is that once the health insurance deductible is reached, the plan covers all costs covered by the plan. This means no copayments at receipt of care. Which are included with other Medicare Advantage plans like PPOs or PFFS

It is also important to note that MSA plans do not offer prescription drug coverage. If you need this coverage, you will have to join a stand-alone Medicare Part D plan.

Medical Medicare Savings Account Part 2: Medical Savings Account

The second part of an MSA is a special savings account. The plan will deposit money into this savings account that can be used to pay for healthcare before the deductible is reached.

The plan usually will only contribute a portion of the deductible, so there will still be out-of-pocket expenses to the subscriber. But these costs will not be as high as they are for Private Fee-for-Service plans. The savings account cannot be added to, so any additional costs will need to be paid out-of-pocket. Even with this stipulation, healthcare providers cannot charge more than the approved amount for care received.

In order to join an MSA, you must have both Medicare Part A and Part B. The only times you can join an MSA is when you first sign up for Part B coverage, or during fall open enrollment. Usually, a subscriber to an MSA will still have to pay a Part B premium. Some MSA plans will charge an additional premium on top of the Part B costs.

You will not be eligible for an MSA plan if you have any other healthcare coverage or medical benefits from your employer.

Looking to get the best healthcare plan for you? Set up a consultation with one of our health advisors today! Call us at 888-218-4543, or set up an appointment right here on our website.

Part 2 of a MSA is a medical savings account that uses a special savings account, that the plan contributes to

Let Us Help You Find The Right Plan

At Buffalo Health Advisors, we believe in providing solutions to seniors as they transition to Medicare plans. Not only can Medicare Advantage work to protect your health, choosing the right plan can go a long way toward protecting your wealth. This plan is critical if you are going to be living on a fixed income during your retirement years.

If you are under the age of 65, we also have options for you. Under certain conditions, you may be eligible for Medicare benefits.

It will cost you nothing to learn more about the options available to you. Call or stop by our Nashville, TN office to discuss your Medicare plan options with one of our experienced agents.

Compare Quotes

Compare Medicare Advantage plans to find the best match for your personal needs with no obligation!

Compare Quotes

Compare Medicare Advantage plans to find the best match for your personal needs with no obligation!

Compare Medicare Quotes

Get In Touch With Buffalo

Medicare and insurance doesn’t need to be complicated. Talk to a Buffalo Health Advisor and let’s figure this out together.