Jack's Blog on Medicare Plan Choices

A Medicare Medical Savings Account (MSA) plan is a type of Medicare Advantage plan that combines a high-deductible health plan with a medical savings account. Here’s how it works: the high-deductible health plan provides Medicare coverage after you meet a high yearly deductible, which is typically higher than other Medicare Advantage plans and varies by plan. Alongside this, Medicare deposits money into a special savings account, which you can use to pay for your healthcare costs before meeting the deductible. Any unused money rolls over to the next year.

MSA plans generally don’t charge a monthly premium beyond the Medicare Part B premium. Once you meet the deductible, the plan covers all Medicare-approved services. You can usually see any provider that accepts Medicare. However, MSA plans don’t include Part D drug coverage, so you would need to join a separate Part D plan if you want drug coverage. These plans offer flexibility, allowing you to decide how to spend the money in your account on qualified medical expenses, and the money deposited and withdrawn for these expenses is tax-free.

MSA plans can be beneficial for those who are generally healthy and prefer more control over their healthcare spending. However, they may not be suitable for everyone due to the high deductible.