Medicare MSA Plans

While all Medicare Advantage plans must cover services covered by Original Medicare Parts A and B, MSA plans have a creative structure. There are two parts to MSA plans: high deductible plans and a savings account.

First, your coverage will only begin once you reach a certain deductible. While the exact number depends on the plan, the deductible is generally high. This is where the MSA comes in. An MSA is a special savings account. The Medicare MSA plan deposits money into this account. The exact amount deposited into the account depends on the plan. You can use this account to pay for your healthcare expenses before you reach your deductible. Once you use up the amount in the account, you must pay out-of-pocket until you reach your deductible. After you reach your high deductible, the plan will start paying for your expenses.

MSA Advantages

The advantage of an MSA is that it may be more cost-effective depending on your needs. These plans have funds deposited into the account each year that can be used to pay for your healthcare costs and count towards your deductible. Once the deductible is met, your costs are 100% covered.

MSA Disadvantages

One major disadvantage of an MSA plan is the high deductible. The amount will vary between plans, so it’s important for you to know your options. If you cannot afford the high deductible, it could become an issue for you financially. 

Another disadvantage of Medicare MSA plans is that it does not include prescription drug coverage. You will have to enroll in a Medicare Part D prescription drug plan.

Find the Right Medicare Coverage

Is a Medicare MSA plan right for you? We can help you figure it out and the best Medicare MSA plans! Contact the Medicare Professionals today to learn more about MSA plans and the benefits they offer.

We are committed to helping you realize your health and financial goals by making you aware of all your options so that you can make the best choice for yourself and your family.

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