MEDICARE

MEDICAL SAVINGS ACCOUNTS 

 FREQUENTLY ASKED QUESTIONS

FAQS

What is the Medicare MSA Plan?

The Medicare MSA Plan is a high-deductible form of Medicare Advantage that allows you to open a tax-advantaged Medical Savings Account (MSA)

FAQS

Can I make contributions to my MSA Account?

Every year your Medicare MSA plan will make contributions to your account, but you cannot add additional money.

FAQS

How much money is deposited in my MSA?

The amount may vary by plan. Currently it is $2000 or $3000 per year, depending on which deductible you choose.

FAQS

When can I sign up for the MSA Plan?

You can sign up for the MSA Plan when you first sign up for Medicare as you turn 65. Alternatively, you can use Medicare’s Annual Enrollment Period from October 15th, to December 7th every year.

FAQS

What happens to the money in my MSA at the end of the year?

The money in your MSA belongs to you. That means that it doesn’t go anywhere at the end of the year, but stays in your account and can grow on a tax-deferred basis.

FAQS

What can I use my MSA account for?

You can use the funds in your MSA to pay for a wide range of medical expenses. This includes premiums and pre-deductible services, as well as things not covered by Medicare, including vision, dental, and over-the-counter medication.

FAQS

Can I use the money in my MSA for non-medical expenses?

Yes, you can even use your MSA funds to pay for non-medical expenses like groceries. However, withdrawals for non-medical expenses will be subject to a steep tax penalty