Medicare Medical Savings Account (MSA) plans are a Medicare Advantage Plan that offers the same basic coverage as Medicare Part A and Part B but also includes additional coverage.
MSA plans use both a high-deductible health plan (HDHP) and a bank account that contribute to paying your medical costs.
What are the benefits of MSA plans?
MSA plans are a type of Medicare Advantage Plan, which means that MSAs must provide the same benefits as Original Medicare. Although Original Medicare. MSAs can also offer additional benefits, such as vision, hearing, and dental services. Other additional benefits include, but are not limited to:
- Adult day-care services
- Fitness memberships
- Nutrition and wellness programs
- Over-the-counter drugs
- Services and supports for those with chronic conditions
- Transportation to doctor visits
Costs for MSA Plans
Some MSA plans may not charge a premium, but it depends on which carrier you choose. However, you will be expected to continue paying your Medicare Centers for Medicare and Medicaid Services. Also known as CMS.
Both Medicare Part A and Part B premium.
You will also be paying out-of-pocket until you reach the HDHP limit. Once the limit is met, you’ll be covered for the rest of the year.
MSA plans also do not offer prescription drug coverage, meaning you will need to enroll in a Medicare Prescription Drug Plan.
How do MSA plans work?
MSA plans use both an HDHP and a bank account to pay for your medical costs.
The HDHP requires a large deductible paid in full before you can receive its coverage. Once you pay the deductible, the HDHP will cover your out-of-pocket costs for the rest of the year.
The plan provider will also deposit funds into the bank account that can be used to pay your healthcare costs. Any funds that are leftover at the end of the year will roll over into your account for the next year.