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Examples of Medicare Medical Savings Account (MSA) plans

Guidance for examples of Medicare Medical Savings Account (MSA) plans

Final

Issued by: Centers for Medicare & Medicaid Services (CMS)

Examples of Medicare Medical Savings Account (MSA) plans

Remember, these are only examples. Plans vary and actual deposit and The amount you must pay for health care or prescriptions before Original Medicare, your prescription drug plan, or your other insurance begins to pay.

" style="text-transform:lowercase;" class="inline hover">Deductible amounts may be different from these examples. Contact the plan in your area to get actual deposit, deductible, copayments, and out-of-pocket maximum information. Find plans in your area.
expandSimple example: Medicare Medical Savings Account (MSA) Plans

Mr. Jones and Mrs. Martinez are interested in joining Medicare MSA Plans. Plans ABC and XYZ are available in their area.

  PLAN ABC PLAN XYZ
Yearly deposit $2,500 $1,500
Yearly deductible $4,000 $3,000
What you pay after the deductible $0 $0
Out-of-pocket maximum $4,000 (same as deductible) $3,000 (same as deductible)

If Mr. Jones joins Plan ABC:

If Mrs. Martinez joins Plan XYZ:

  • Plan XYZ deposits $1,500 into her account at the beginning of the year.
  • If she uses the money in her account for Medicare-covered Part A and Part B services, she will have to spend $1,500 out-of-pocket before she meets her deductible and before the Medicare MSA Plan will begin paying for her health care.
  • Once Mrs. Martinez has met her deductible, Plan XYZ pays all of her Medicare-covered Part A and Part B health care costs, and she pays nothing.
  • Mrs. Martinez must continue to pay the monthly Part B premium.  
expandDetailed example: Medicare-covered expenses count toward the plan deductible in MSA Plans

Mrs. Chang joins a Medicare MSA Plan with a $3,000 yearly deductible and deposits $1,500 into her account. The plan pays for all Medicare-covered services once Mrs. Chang meets the deductible. Look below to see how Mrs. Chang uses the money in her account.

Mrs. Chang has a $500 doctor's visit and uses her account to pay for this expense. Since the expense is a Medicare-covered service, the $500 is credited towards her deductible.

Account balance Deductible
$1,500 − $500 = $1,000 $3,000 − $500 = $2,500

Mrs. Chang gets an MRI that costs $1,000. She uses her account to pay for this expense. Since the expense is a Medicare-covered service, the $1,000 is credited towards her deductible.

Account balance Deductible
$1,000 − $1,000 = $0 $2,500 − $1,000 = $1,500

Mrs. Chang visits specialists and the total cost of the visits and additional tests is $1,500. She's used all the money in her account, and must now pay out-of-pocket until she reaches her deductible. Since the expense is a Medicare-covered service, the $1,500 is credited towards her deductible.

Account balance Mrs. Chang's out-of-pocket costs Deductible
$0 $1,500 $1,500 − $1,500 = $0 (deductible is met)

Mrs. Chang is admitted to a hospital for surgery. The cost for her hospital stay is $12,000. Since she has met her deductible, the plan pays all of her Medicare-covered Part A and Part B services for the remainder of the year.

Mrs. Chang's out-of-pocket costs Plan pays
$0 $12,000
expandDetailed example: Non-Medicare-covered expenses count towards the plan deductible in MSA Plans

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DISCLAIMER: The contents of this database lack the force and effect of law, except as authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically incorporated into a contract. The Department may not cite, use, or rely on any guidance that is not posted on the guidance repository, except to establish historical facts.