Medicare Medical Savings Account (MSA)
The Medical Savings Account (MSA) offered as a Medicare Advantage Plan is offered by a private insurance company and is much like the Health Savings Account found outside of Medicare. A Medicare Medical Savings Account plan combines high-deductible health coverage with a medical savings account that you can use to pay your medical costs.
In a high-deductible plan, the plan will only begin to pay your medical costs after you have satisfied a high annual deductible which may vary from plan to plan. The second part of this plan is a Medical Savings Account into the plan deposits part of the money it receives from Medicare. The amount deposited is less than the high deductible and you can use these funds to pay your medical costs prior to meeting the deductible. Medicare Medical Savings Account Plans do not include drug coverage so you’ll if you want prescription drug coverage, you’ll need to join a Medicare Part D Prescription Drug Plan. In a Medicare Medical Savings Account Plan, you do not need a primary care physician and you don’t need a referral to see a specialist.
While the deductible is quite high, all monies spent for Medicare Part A and Part B services count toward the plan’s deductible. Your plan will cover all your Medicare-approved health care expenses in full once you reach your maximum out-of-pocket limit. Any money left in your Medical Savings Account at the end of the year remains in the account to be joined by the deposit of the subsequent year.