Medicare Medical Savings Account Plans
What are Medicare Medical Savings Account Plans (MSA)?
Medicare MSA plans are provided by United States Medicare-approved private insurance companies and they come with a wide range of benefits that are not covered by Original Medicare.
These benefits may include:
- Chronic condition healthcare services and support
- Adult day-care services
- Dental, vision, and hearing
- Fitness, nutrition, and wellness programs
- Over-the-counter drugs
- Doctor’s appointment transportation.
How Medicare MSA plans work
Before enrolling in Medicare MSA plans, here is everything you need to know about them.
- Medicare MSA plans come with deductibles
Medicare MSA plans include high deductible health plans (HDHP) which you must pay for in full before you can receive coverage that covers all your remaining healthcare costs for the entire year.
- Your Medicare insurance company deposits funds into a savings account
Medicare MSA also comes with a bank account that your Medicare insurance provider deposits funds annually to cover your healthcare expenses. Although you can use these funds to cover your deductibles, they are usually lower than the deductibles you need to pay.
If there happens to be money left over in your savings account at the end of the year, it is carried over to the next year.
- Tax exemptions
MSA plan funds are exempted from taxes as long as they are used strictly to cover medical expenses.
- Pay out-of-pocket costs may apply
If you use up all the money in your Medicare MSA account, you will have to cover your healthcare expenses until you reach your deductible. Moreover, you cannot deposit money into your Medicare MSA account.
- Original Medicare Enrolment
You have to be enrolled in Medicare Part A and Part B to be eligible for Medicare MSA coverage.
- Healthcare networks
Most Medicare MSA insurance providers have healthcare networks and should you receive out-of-network care, you may pay higher healthcare costs.
- Medicare Part D coverage
Medicare MSA Plans do not include prescription drug coverage and out-of-pocket costs associated with prescription drugs do not count as deductibles. You will have to enroll in Medicare Part D standalone plan to receive such benefits.
- Benefits
Your Medicare MSA benefits depend on your Medicare provider and they vary with your location.
Medicare Advantage Medicare Medical Savings Account Enrolment periods
As Medicare Medical Savings Accounts fall under Medicare Part C, their enrolment periods are the same as those of Medicare Advantage plans. They are as follows:
- Initial Coverage Election Period
This period is open for seven months, and it falls between the three months before your 65th birthday and three months after your 65th birthday month.
For young people living with a disability, however, you become eligible for Medicare benefits 25 months after you first start receiving Social Security Benefits. Your enrolment period will be open between the three months before and three months after the month you become eligible.
- Annual Election Period
The Annual Election Period is open from October 15th to December 7th and your Medicare Medical Savings Account coverage will begin on the 1st of January the following year.
- Medicare Advantage Open Enrolment Period
Medicare Advantage beneficiaries can change their plans or migrate to Original Medicare during this period.
- Special Election Period
These are open on an individual basis when exceptions are made for instances such as changing your Medicare Advantage coverage area or moving into a nursing home occur. During this period, you can change your Medicare plan to suit your requirements.
