Medicare Medical Savings Account

What Does Medicare Medical Savings Account Mean?

A Medicare Medical Savings Account is a type of Medicare Advantage plan that combines a high-deductible health plan (HDHP) with a medical savings account (MSA). Individuals enrolled in a Medicare MSA plan can initially use their savings account to cover healthcare expenses. Once they reach their deductible, they will have coverage through the high-deductible insurance plan.

Insuranceopedia Explains Medicare Medical Savings Account

Medicare Medical Savings Account (MSA) plans give Medicare beneficiaries greater control over their healthcare choices while offering coverage for significant healthcare expenses. Certain MSA provisions are waived to make these plans more similar to other consumer-directed health plans.

Medical savings accounts allow tax-deferred contributions to be used for a variety of medical expenses, including payments toward the deductible of the HDHP portion of the plan.