Switching to a Medicare Advantage plan like the MSA is an increasingly popular way to lower the monthly cost of Medicare. It can also make Medicare coverage even stronger, as some plans include coverage for things like dental, vision, and heating. But can Medicare MSA Plans cover Part D prescription drugs? This guide will provide the answer to this question, as well as a few other common queries about the 2021 Medicare MSA Plan.

Do Medicare MSA Plans Cover Part D

Start Here: What is the Medicare MSA Plan?

The Medicare MSA Plan is an advanced form of Medicare Advantage. It combines a high deductible, $0 Premium Medicare plan with a tax-advantaged Medical Savings Account (MSA).

Every year, the plan pays out a portion of the enrollee’s benefit into a tax-advantaged account or MSA. This money is owned and controlled 100% by the beneficiary, giving them more control of how their Medicare dollars are being spent. As long as the MSA money is used on a qualified Medicare expense, it remains tax-free.

With a $0 monthly cost and a savings vehicle like the MSA, these plans are becoming a valuable investment opportunity, particularly for people who don’t use their medical coverage that often.

READ MORE: “HSA or MSA: What’s the Difference?”

Do 2021-2022 Medicare MSA Plans Cover Part D?

No, the Medicare MSA plan does not include Part D prescription drug coverage.

However, enrollees can choose to enroll in a standalone Part D plan, then use their MSA to cover the copays. When you use your MSA funds to cover the costs of your copays, it counts towards your Part D’s out-of-pocket limit.

What is the Medicare MSA Plan Deductible?

Like other Medicare Advantage plans, your annual deductible will depend on your plan options. Generally speaking, the 2021 Medicare MSA Plan deductible was between $3,000 and $4,000.

With most MSA plans, the annual MSA contribution is not enough to meet the annual deductible. This means that it could take a number of years before there is enough money in the MSA to cover all of your out-of-pocket costs.

Looking to Find an MSA Plan? Make an Appointment with a Personal Benefits Manager

Click here to schedule a consultation.  

If you’re already enrolled in Medicare, the only time you can switch to the MSA Plan is during Annual Enrollment or AEP. This happens every year from October 15th to December 7th. This is also the only time of year you can enroll in Part D prescription coverage if you don’t already have it.

Your Personal Benefits Manager can help you make any changes you need during AEP. In the meantime, be sure to keep checking in with the MediGap Advisors Blog for more tips and tutorials about getting the most out of your Medicare.