Medicare Medical Savings Accounts (MSAs)
Medicare Medical Savings Accounts (MSAs) are open to people who have Medicare A and B, but do not also have insurance through a group health plan or have TRICARE, FEHBP or Medicaid.
MSAs have two parts:
- A Medicare Advantage plan that only covers health care costs after you spend an amount on qualified medical care equal to the amount of the high deductible in the subject year. The amount of the deductible varies depending on the particular plan. The maximum is $10,000.
- A special savings bank account account into which you deposit money each year. If the money is used for qualified health care expenses, the money that goes into the account is not taxed. If you do not use all the money in an MSA during the year, the money can stay in the account for the following year.
To get Medicare drug benefits with an MSA, it is necessary to purchase a stand-alone Medicare drug plan (Part D)
You can only enroll in an MSA plan when you first qualify for Medicare Advantage and during the Fall Open Enrollment period each year. The MSA becomes effective January 1 of the following year.
For additional information, see: www.medicare.gov/Publications/Pubs/pdf/11206.pdf