Medicare Medical Savings Account

A Medicare Medical Savings Account is a type of Medicare Advantage plan in which it is paired with a high deductible and a savings account to pay for your care. 

How does a Medicare Medical Savings Account work?

With a Medicare Medical Savings Account (Medicare MSA) plan, you’ll set up an account with a bank the plan selects. Medicare then places money in your account each year for your health care. 

You can use the money in your account to pay your health care costs, including health care costs that aren’t covered by Medicare. 

When you use your account’s money for Medicare-covered Part A and Part B services, it counts towards your plan’s deductible. 

Once you’ve used all of the money in your account, you’ll have to pay for your healthcare services until you reach your plan’s deductible.

After you reach your deductible, your plan will cover your Medicare-covered services. 

If there is any money left in your account at the end of the year, it rolls over and can be used for your healthcare expenses for the next year.

What do Medicare Medical Savings Accounts cover?

After you reach your deductible, your Medicare MSA will cover Medicare Part A and Part B benefits and may include additional benefits like: 

  • Adult day-care services
  • Dental
  • Fitness club memberships
  • Hearing
  • Over-the-counter medications
  • Prescription drug coverage
  • Services and supports for those with chronic conditions
  • Transportation to doctor visits
  • Vision
  • Wellness Programs

When to enroll

You can enroll in an Advantage when you first become eligible for Medicare and are enrolled in Parts A and B. 

Your initial enrollment period is a 7-month period that begins three months before the month you turn 65 and ends three months after the month you turn 65.

There are two other times each year after that you can join or make changes to a Part C plan.

The first is the annual election period from October 15 to December 7 in which you can: 

  • Change from Original Medicare to a Medicare Advantage Plan.
  • Change from a Medicare Advantage Plan back to Original Medicare.
  • Switch from one Medicare Advantage Plan to another Medicare Advantage Plan.
  • Join a Medicare Prescription Drug Plan.
  • Switch from one Medicare drug plan to another Medicare drug plan.
  • Drop your Medicare prescription drug coverage altogether.

The second is the Medicare Advantage Open Enrollment Period from January 1 to March 31 in which you can: 

  • Switch from one Medicare Advantage Plan to another Medicare Advantage Plan.
  • Drop your Medicare Advantage Plan and return to Original Medicare. If you do this, you’ll also be able to join a Medicare Prescription Drug Plan.