If you are a Medicare enrollee, then you have the choice to sign up for a Medical Savings Account (MSA) plan. Medicare Part C MSA plans (or Medicare Advantage MSA plans) integrate a medical savings account with health care coverage.
With this plan you will get a certain dollar amount every year for your health care. After that, the plan will deposit some of the money into your bank account. Before you start your coverage, you will have to pay out-of-pocket. This is because the deductible amount is more than the deposited amount. If you signed up for a Medicare Advantage MSA plan, you can get health care from any hospital or doctor. But be aware that your Medicare Advantage plan may have a network of hospitals and doctors you can see for a cheaper cost.
The list of benefits you get under a Medicare Advantage MSA plan
| Medicare Savings Account (MSA) plan | |
|---|---|
| Is there prescription drug coverage? | No. You can join a Medicare Part D plan to get drug coverage. |
| Do I have to pick a primary care doctor? | No. |
| Do I need a referral to see a specialist? | No. |
Here’s what to know before enrolling in a Medicare Advantage MSA plan
You will owe a high deductible if you want to get a Medicare Advantage MSA plan. If you are cautious, know that any money spent towards the covered services of Medicare Part A and Part B add up toward the plan’s deductible. Once you meet your out-of-pocket spending limit, your needs will be paid for completely by your Medicare Advantage MSA plan. If your account at the end of the year still has money left over, then it will stay in your account, as well as the deposit for the following year.