Medicare MSA
A High Deductible Health Plan + Medical Savings Account = Medicare MSA Plan
A Medicare Medical Savings Account (MSA) plan is a special type of high deductible Medicare Advantage Plan with a medical savings account.
Similar to a Health Savings Account (HSA) — which is found outside the Medicare market — Medicare MSA plans can provide Medicare members with more control over health care utilization, while still providing coverage against catastrophic health care expenses.
What is a Medicare MSA?
A Medicare MSA plan is a special type of savings account. Medicare pays a set amount of money to health plans that apply to Medicare and are approved to offer this type of plan. The health plan deposits money from Medicare into the member's savings account at the beginning of each year. Members cannot deposit their own money into the account, but your members retain control of the account and unused funds automatically rollover from year to year.
Key product features
- FDIC-insured checking account
- Debit cards with protection against misuse of funds
- Checkbook
- Monthly account statements
- Tax reporting
Eligibility for Medicare MSA
The Medicare MSA eligibility requirements are as follows:
- Must be eligible for Medicare
- Must not have other medical coverage that would cover your Medicare MSA Plan deductible
- Must not receive benefits from the Department of Veterans Affairs or Department of Defense (TRICARE)
- Must not be a retired Federal government employee and part of the Federal Employee Health Benefits Program (FEHBP)
- Must not be enrolled in Medicaid
- Must not have End-Stage Renal Disease
- Must not be currently receiving hospice care
- Must live in the United States more than 183 (total) days a year