Medicare MSA Plans: Am I Eligible?

MSA is an abbreviation of Medicare Medical Savings Account plan. These are high-deductible coverages provided by private agencies. MSA seem quite identical to MA (Medicare Advantage) plans. However, there’s one major difference which sets both these plans apart. Just like HSA’s, MSAs set-up bank accounts which the person can use for paying their medical expenses. This help balance the high deductible of Medicare coverages.


MSA Parts:


Each MSA plan consists of 2 parts:


  1. A medical savings account
  2. The insurance plan


Insurance plans are offered via private insurance agencies however they’re by Medicare. As opposed to regular MA plans, MSA’s can have higher deductibles. For the year 2018, the maximum deductible that is allowed by Medicare is $11,950.


The above deductible will be based upon when the person enrolls in the plan. Hence, in case you wish to begin your coverage on 1st July where the deductible for 12 months is around $8,000, then the deductible for the remaining part of the year would probably be $4,000. After reaching the deductible amount, your coverage will pay for services covered by Medicare.


Medical savings account:


Basically, this is a banking account that will be used for paying your medical expenses till you reach the respective deductible amount. In case you’re using MSA for paying for services that are covered by your policy, it’ll count to the deductible.


The money can be deposited in your bank account only by your plan, or else you’ll be accountable for any charges till the deductible is reached.


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MSA plans: What Do They Cover?


These plans will pay for every service that is essential & covered under MA plans. Anything that your Original Medicare covers will also be covered by MSA. Similar to the Advantage plans, services like vision, dental, etc. will also be covered by MSA’s.


One noteworthy exclusion to this is coverage of prescription drugs. The good news is, you will be still eligible for Part D Medicare in order to fulfill your requirement for prescription medications.


MSA Plans: Who Cannot Participate?


Certain circumstances might make a person ineligible for MSA plans. A few of these are listed below:


  1. People who’re eligible for Medicaid enrollment.
  2. People suffering from End-Stage Renal Disorders, except both the below mentioned circumstances apply:
  3. People who’re previous enrollees in MA plan & have left Medicare;
  4. People who haven’t participated in a different MA plan ever since.


  1. People who’re receiving hospice care at the moment.
  2. People who’re receiving benefits which covers plan deductible, like health benefits from the union or their company.
  3. People who’re receiving benefits from the U.S. Veterans Affairs or Defense Department.
  4. People who’re enrolled in a Health Benefits Government Program.
  5. People who reside outside the country for over 183 days during a year.