Medicare supplemental plan and Medicare Medical savings account (MSA)? Pt 1
You can’t buy a Medicare supplement policy (Medigap) if you have a Medicare Medical, MSA savings account. However, if you purchased the Medicare Supplement Plan before registering for your Medicare MSA, you can maintain the Medicare health care plan. In this case, you will still need to pay your monthly premium for your Medicare supplemental plan. Meanwhile, please note that you cannot use the supplemental Medicare policy to pay for medical expenses up to the annual Medicare MSA deductible. Although each 2019 Medicare Supplement plan and Medicare MSA Plan provide benefits for paying covered services which are not paid for by Medicare Parts A and B, they are not formulated to function together.
How does MSA Medicare work?
If you are connected to a Medicare Medical savings account, you probably know that this is a special policy on the benefits of Medicare. Medicare Advantage plans offer another way to get Medicare Part A and B benefits. Like other kinds of Medicare Advantage plans, Medicare MSAs are offered by Medicare-accredited private insurance companies and must offer a minimum of the same benefits as Part A of Medicare (health insurance) and the part B (medical insurance); there is an exception of palliative care as provided under Part A of Medicare.
Unlike other types of Medicare Advantage plans, MSA Medicare consists of two parts:
• a savings account
• High deductible health insurance.
It is the user’s responsibility to manage the savings account part of a Medicare MSA plan. The account, however, is funded with money from Medicare. MSA Medicare Plan keeps the money you receive from Medicare at the start of each year in a savings account of a specific bank. The amount can vary. The user is responsible for the payment of all costs of Medicare health care until the plan is released.
You can make tax-free withdrawals to pay for eligible medical expenses defined by the Internal Revenue Service (IRS). Eligible medical expenses may include expenses for services covered Medicare, parts A and B, as well as other healthcare costs. The figures in your savings account can be tax free and every savings account balance is transferred from one year to another. You can’t deposit your money into a MSA Medicare savings account. You do not pay a monthly premium for your Medicare MSA. Continue to pay the Medicare Part B. premium
In general, Medicare MSA provides:
Before reaching the deductible amounts for parts A and B, cover the Medicare costs for parts A and B. Have a high deductible: The deduction of the plan is a certain fixed amount of dollars per year. The deductible of the plan can be greater than the amount that the plan has deposited on the savings account. For this situation, it may be necessary to pay the cost of Medicare until the deductible amount of the MSA plan is reached. Pay 100% of the cost of benefits covered by Medicare when you stop the MSA plan. Withdrawals from savings accounts used to pay for benefits covered by the plan are added to the deductible.