Medical Savings Account Plan

You can obtain your health coverage through a few options made possible by Medicare working together with private companies. Private companies may offer a Medicare Advantage Plan which is directed for consumers specifically, know as Medical Savings Account Plan or MSA Plan. Similar to HSAs, these plans offer flexibility in health care providers and health care services.

MSA Plans are made up of two components. The first component is the heal insurance plan, which has a high deductible.  The plan type is a Medicare Advantage Plan, also known as Part C.  In order for the plan to begin paying for medical service costs, you must first meet the deductible; that's where the second component comes in.

 

The second component is a medical savings account  into which funds are deposited by the MSA plan. Those funds may be used to pay for medical health care and costs prior to meeting your deductible. In essence, funds from your MSA plan can be used to help you meet your deductible.

Unlike MAPD Plans, MSA plans do not include prescription drug coverage. If you do not have any other creditable prescription drug coverage, you will have to purchase a stand-alone prescription drug plan.