In 2020, Medicare Medical Savings Account (MSA) plans are available in Ohio and other states. An MSA is a type of Medicare Advantage that combines a high-deductible health plan with a special medical savings account.
MSAs are relatively simple benefit plans with no copays, referrals or prior authorizations. There are several basic points:
- The plan deposits money into your MSA savings account.
- You decide how to spend, save and/or invest the funds.
- Until you reach the plan deductible, you are responsible for expenses. Doctors and other providers can’t charge you more than the Medicare-approved amount.
- Once you have reached the plan deductible, the plan pays 100% of additional Medicare A and B expenses.
- Any funds remaining at year-end belong to you and roll over to the next year.
- MSAs do not include prescription drug coverage, and enrollment in a standalone Part D prescription drug plan is recommended.
- MSA is the only Medicare Advantage product that gives you money
- No network – you can see any Medicare provider in the country accepting new patients
- Must be eligible for Medicare and live in the plan’s service area
- May not have any other coverage that would cover the MSA plan deductible, including benefits under an employer or union group, TRICARE, the VA or FEHBP
- Not currently eligible for Medicaid
Prescription Drug and Ancillary Coverages
You can purchase additional, limited benefit policies that best fit your needs, and use your MSA funds to pay for items such as plan copays or deductibles for the following:
- Medicare Part D prescription drug plan
- Hospital Indemnity
- Critical Illness Insurance
- Long Term Care, including premiums
Interested in learning more about MSAs? Reach out to us.
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