Medicare Medical Savings Account (MSA) Plans
Medicare works with private insurance companies to offer you ways to get your health care coverage. These companies can choose to offer a consumer-directed Medicare Advantage Plan, called a Medicare MSA Plan. These plans are similar to Health Savings Account Plans available outside of Medicare. You have flexibility in choosing your health care services and providers.
Medicare Advantage MSA Plans – Part C Medical Savings Account
Medicare beneficiaries have the option to enroll in a Medical Savings Account (MSA) plan. Medicare Advantage MSA plans (or Medicare Part C MSA plans) combine health care coverage with a medical savings account. Medicare gives the plan a dollar amount each year for your health care, and the plan then deposits a portion of this money into your bank account. The amount deposited is less than your deductible amount, which is generally quite high, so you will have to pay out-of-pocket before your coverage begins. Individuals enrolled in a Medicare Advantage MSA plan can receive health care from any doctor or hospital. However, some Medicare Advantage MSA plans may have preferred doctors and hospitals you could go to for a lower cost.
What is a Medicare Advantage Plan?
If you have health coverage from your union or current or former employer when you become eligible for Medicare, you may automatically be enrolled in a Medicare Advantage Plan that they sponsor. You have the choice to stay with this plan, switch to Original Medicare, or enroll in a different Medicare Advantage Plan. Be aware that if you switch to Original Medicare or enroll in a different Medicare Advantage Plan, your employer or union could terminate or reduce your health benefits, the health benefits of your dependents, and any other benefits you get from your company. Talk to your employer/union and your plan before making changes to find out how your health benefits and other benefits may be affected.