Medicare Medical Savings Account and No Part D Plan

A Medicare Medical Savings Account is a Medicare Advantage Plan where a Private Insurance company provides your Medicare Part A and Part B benefits. In a Medicare Medical Savings Account, you can get Medical Services from any provider who accepts the terms and conditions of the plan. A Medicare Medical Savings Account works differently than Original Medicare and Medigap insurance. The plan will include a Deductible and a contribution into your Savings Account which will vary based on the plan specifics in your area. This option would include no Medicare Prescription Drug benefit.

Is this option right for me?

• If you don't want supplementary coverage for Prescription Drug coverage, this could be a good choice.
• If you are willing to get your Medical Services from providers who are willing to accept this plans terms and conditions, this could be a good choice. You may still see any provider in cases of urgently needed care or an emergency.
• If you are willing to accept higher out of pocket costs when you receive medical services in exchange for no monthly premiums, this could be a good choice.
• If you don't mind paying a deductible up front, this could be a good choice.
• If you like having the flexibility to spend the Medicare MSA contributions on other medical expenses like hearing, dental or vision, this could be a good choice.
• If you'd like a cap on your maximum out of pocket expense, this could be a good choice.

Advantages

• Financial Exposure to Part A and Part B cost sharing is limited to the deductible on the plan.
• You can use the contribution to your Medicare Medical Savings Account to help meet your deductible.
• Any balance left in the Medicare Medical Savings Account can be rolled over to the following calendar year.
• Any balance left in the Medicare Medical Savings Account can be used to pay for a variety of medical expenses with no tax consequences (for example, Dental, Hearing, Vision, Prescriptions, etc.) Refer to IRS code for complete list.
• Premium is always zero.
• No Part D plan means you will not pay a Part D premium.

Disadvantages

• Out of Pocket costs can vary depending on your level of utilization of services up to the deductible amount.
• Must use providers who are willing to accept the terms and conditions of the plan. You may still see any provider in cases of urgently needed care or an emergency.
• Medicare Advantage plans are not Guaranteed Renewable like Medicare Supplement plans. In addition, the deductible and contribution can be changed on a calendar year basis.
• Unlimited financial exposure for Part D Prescription drug expenses. (You have the option of electing a stand-alone prescription drug plan for a premium.)
• Late Enrollment Penalty would apply for Medicare Prescription Drug benefit unless there is other Creditable coverage.

Costs — Medical and Hospital

• The Premium for a Medicare Medical Savings Account is always zero.
• There will be a deductible for Medicare A and B type services, such as Hospitalization, Doctor Office visits, diagnostic tests, x-ray, therapy, etc.
• You can use the money which is contributed into your Medicare Medical Savings Account to meet your deductible.