Medicare Medical Savings Acct Loans
Medicare Medical Savings Account (MSA Plans) are another type of Medicare Advantage Plan. They are consumer-directed and similar to HSA (Health Savings Account) plans.
Medicare Medical Savings Acct Loans
How Do MSA Plans Work?
MSA plans are a combination of a high-deductible insurance plan and a medical savings account. You can use them together to pay for your health care costs.
- The High-deductible insurance plan is a special type of high-deductible Medicare Advantage plan. The plan begins to cover your costs once you meet a high yearly deductible, which will differ depending on your insurance provider and specific plan.
- The Medical Savings Account (MSA) is a special type of savings account similar to a Health Savings Account (HSA). The Medicare MSA Plan deposits money into your account. You can then use that money to pay health care costs before you meet your deductible.
After you join your Medicare MSA plan, you’ll set up an MSA with a bank selected by the plan. Medicare funds the plan each year for your medical care. Then, the plan deposits money in your account. You can use that money to pay your health care costs, and that money counts towards your deductible when you use it for Original Medicare services.
Once you use all the money in your account, you have to pay additional health care costs out-of-pocket until you reach your deductible. After you reach your deductible, the plan will pay your Medicare-covered expenses.
One key benefit of MSA plans is the ability to choose your health care services and providers.
Who Can Get an MSA Plan?
MSA Plans are a less common type of plan and they aren’t available everywhere. Usually, you can join an MSA plan as long as you live in the plan’s service area and you are enrolled in Original Medicare (Medicare Part A and Part B).
But there are exceptions. You can’t join an MSA plan if any of the following apply to you:
- You’re eligible for Medicaid
- You have health care coverage that would cover the Medicare MSA Plan deductible, like a union retiree plan
- You get benefits from the US Department of Defense or the US Department of Veterans Affairs
- You’re part of the Federal Health Benefits Program as a retired Federal government employee
- You live outside the US more than 183 (total) days a year
- You’re currently on hospice
- You have End-Stage Renal Disease, unless you’re a former enrollee in a Medicare Advantage Plan that left Medicare or you haven’t joined another Medicare Advantage plan
What’s Covered Under an MSA Plan?
MSA plans must cover the Medicare services that all Medicare Advantage Plans must cover, including:
- Medicare Part A (hospital insurance): inpatient care in a hospital, skilled nursing facility care, nursing home care, home health care, and hospice care
- Medicare Part B (medical insurance): services deemed medically necessary as well as preventive and screening services
Like other Medicare Advantage plans, some MSA plans may cover extra benefits like dental, vision, hearing, and long-term care at an extra cost.
However, unlike some other Medicare Advantage plans, Medicare MSA Plans do not offer Medicare Part D prescription drug coverage. With an MSA plan, you’ll likely need to join Medicare Part D to keep high drug costs down.
How Much Do MSA Plans Cost?
MSA plans require you to pay your monthly premium for Medicare Part B, but you don’t pay any additional monthly premium for the MSA plan.
Your MSA plan will only pay for your eligible Medicare services after you reach your deductible. Your deductible will vary by plan but is always high, and before you meet it you’re required to pay out-of-pocket for any Medicare-covered services.
Choosing an MSA Plan
How do you decide if a particular MSA plan is right for you? Make sure you find out the following information about any plan you’re considering:
- How much will be deposited in your account each year
- The plan’s deductible amount
- How services are counted against your deductible
- What you are responsible for paying after you meet the deductible
- What, if any, other insurance is offered, like dental or vision
- What preventive services, if any, are covered before meeting your deductible
Could an MSA Plan Be Right For You?
Senior Health Solutions can help you decide. We have years of expertise helping seniors make the health care coverage decisions that give them peace of mind. Medicare can be complicated, but we make it easy to get the coverage you need. Give us a call at (866) 445-5215 today.
