A Medicare Medical Savings Account (MSA) plan is a type of Medicare Advantage plan that does not include prescription drug coverage (MA).
The Two Parts of an MSA
Unlike other Medicare Advantage plans, Medical Savings Account plans are made up of a high-deductible health plan for your Medicare Part A and Medicare Part B coverage and
a medical savings account funded by an annual tax-free deposit.
So, you use the money in your savings account to pay for Medicare Part A and Medicare Part B expenses, and when your MSA deductible is met, the plan pays for any further Medicare-covered services.
Please note, the annual MSA deductible varies by plan.
Adding Medicare Part D Drug Coverage to an MSA
Since, MSAs do not include Medicare Part D prescription drug coverage, MSA members can enroll in any available
stand-alone Medicare Part D plan (PDP) for their drug coverage.
Recent changes expanding the MSA Landscape
In past year, MSAs were available only on a limited basis across the country. For example, in 2018, MSAs were available to Medicare beneficiaries in only 111 counties across two (2) states. In
2021, Medicare Medical Savings Accounts are available to millions of Medicare beneficiaries in 38 states
across the country, an increase over 2020 Medicare Medical Savings Accounts that were available to in 1,883 counties located in 29 states
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(source: Medicare.gov and Q1Medicare.com Team)