A Medicare Medical Savings Account (MSA) is an insurance policy that combines high deductible health care coverage with a medical savings account. They offer the same benefits as other Medicare Advantage plans but have added benefits that may prove valuable to some Medicare beneficiaries. Here are some key facts about MSA plans.
What Is A Medicare Medical Savings Account Plan?
An MSA is a unique Medicare Advantage plan that may offer beneficiaries some unique benefits. Apart from providing individuals with their basic Part A and B benefits, an MSA plan may also include supplemental benefits like dental, vision, or hearing care. Most MSA plans do not include prescription drug coverage, therefore you will need to source coverage from Medicare’s Part D prescription drug coverage program. Other services like long-term care may be available for an extra cost as well.
How Does The Savings Component Of An MSA Plan Function?
MSA plans accrue monetary value that can be saved and later spent on health care expenses. Here’s an example of how the savings account works:
- MSA plan deposits $1,500 into a man’s account at the beginning of the year.
- The man uses the money in the account for Medicare-approved Part A and Part B health care services, but in order to do so, he must spend $1,500 to meet his deductible.
- Once the deductible has been met, the man’s plan pays the rest of his Medicare-covered costs leaving him with no out-of-pocket costs.
You keep any money left in the account if you decide to cancel the plan at the end of the year. If you cancel your policy in the middle of the year, some of the money will be refunded to Medicare. The amount refunded will depend on the number of months left in the year.
Medicare MSA Cost
Many MSA plans do not charge a monthly premium in addition to the standard Part B premium, but some may. In most cases, you will have high out-of-pocket costs up until the point that you pay off your deductible. Though, after reaching your deductible your MSA plan will pay a majority of your medical costs.
Your MSA plan will also allow you to save money, as it is not subject to taxes as long as the funds it holds are used to pay for qualified medical expenses. You won’t have to worry about losing unspent funds in your MSA either, as leftover funds roll over at the end of each year.
Medicare MSA Providers
MSA plans are quite flexible in who they allow their plan members to receive treatment from. They cover in-network care, but may also cover out-of-network care in some instances. Although, out-of-network services will come at a higher out-of-pocket cost. With an MSA plan, you will pay the least by seeing health care providers within your plan’s network.
Find A Medicare Savings Account Plan
There are plenty of Medicare Advantage plans available currently. Let us help you find one that offers you the benefits you need at a cost you can afford. Contact the experts at The Fussell Group Insurance Advisors now to discover more during a quick consultation.