Medicare Plans by Turning 65 Solutions


Medicare Medical Savings Account Plans

Medicare Medical Savings Account (MSA) plans are a type of Medicare Advantage, plan which are generally known as Part C and must include all basic benefits like Original Medicare. Those plans are sold by private insurance companies like Turning 65 Solutions which need to follow rules set by Medicare. MSA plans must provide you with the same coverage as Original Medicare, but they offer extra benefits, too.


Medicare Medical Savings Account Plans

MSA plans work in a combination of a high-deductible insurance plan and medical savings account which is designed to cover your out-of-pocket medical costs. HDHPs include a large deductible amount that you are obligated to pay in full in order to receive coverage. After you meet the deductible, the HDHP covers 100% of your costs for the rest of the year.

As previously mentioned, MSA plans also include a bank account. In this bank account, the plan provider deposits funds every year for your medical costs. Then, you can use these funds to pay the deductible. Just know that the amount the plan provider contributes is less than the deductible.


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How Does Medicare MSA Plan Work?

When it comes to MSA plans, here is what else you should know:

  • To be in an MSA plan, you must stay enrolled in Original Medicare.
  • you can deposit more money into your MSA account, so if you have spent all the money in the account, you pay out-of-pocket until you reach the deductible.
  • full amount of money that you didn’t spend when the calendar year ends, will be transferred to next year
  • As long as the contributed funds are used for qualified medical costs, they are not taxed.
  • Part D coverage is not included so if you want prescription drug coverage, you must join a standalone Part D plan.
  • if you purchase a Part D plan, all out-of-pocket expenses that are involved with drug prescriptions are not connected with the MSA deductible
  • MSA plans usually have provider networks that are required to cover out-of-network care. However, you might pay a higher cost.

Who Can’t Join MSA Plan?

  • There are certain rules for whom is eligible to get an MSA plan. Therefore beneficiaries aren’t eligible if they fall into some of these categories:

    • You have health coverage that can cover the Medicare MSA Plan deductible, alongside the benefits under an employer or union group health plan.
    • You get benefits from the Department of Defense (TRICARE) or the Department of Veterans Affairs
    • You’re a retired Federal government employee and part of the Federal Employee Health Benefits Program
    • You’re eligible for Medicaid
    • You have End-Stage Renal Disease
    • You’re currently getting hospice care
    • You live outside the United States more than 183 in a year


MSA Plans Costs

MSA plans don’t usually have a monthly premium besides to the Part B premium. You can have a higher out-of-pocket cost before you meet the deductible. Your yearly deductible is pro-rated according to the months that are left in the following year.

For, example if your deductible is 7000$ and the coverage starts October the 1st your monthly payment will be 3500$. You will not be taxed if you used money that is left in your account for your qualified medical expenses.

If you are interested in purchasing an MSA plan you can do it here at Turning 65 Solutions. Call us today for more information.