Medical Savings Accounts (MSA)

Guidance for Medical Savings Accounts (MSA)

Final

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

Medicare Medical Savings Account (MSA) Plans

What's a Medicare MSA Plan?

Medicare works with private insurance companies to offer you ways to get your health care coverage. These companies can choose to offer a consumer-directed Medicare Advantage Plan, called a Medicare MSA Plan. These plans are similar to Health Savings Account Plans available outside of Medicare. You can choose your health care services and providers.

Medicare MSA Plans have 2 parts

Medicare MSA Plans combine a high-deductible insurance plan with a medical savings account that you can use to pay for your health care costs.

High-deductible health plan: The first part is a special type of high-deductible
A type of Medicare health plan offered by a private company that contracts with Medicare. Medicare Advantage Plans provide all of your Part A and Part B benefits, excluding hospice. Medicare Advantage Plans include:
- Health Maintenance Organizations
- Preferred Provider Organizations
- Private Fee-for-Service Plans
- Special Needs Plans
- Medicare Medical Savings Account Plans
If you’re enrolled in a Medicare Advantage Plan:
- Most Medicare services are covered through the plan
- Medicare services aren’t paid for by Original Medicare
Most Medicare Advantage Plans offer prescription drug coverage.

" class="inline hover">Medicare Advantage Plan (Part C) . The plan will only begin to cover your costs once you meet a high yearly 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 , which varies by plan.

Medical Savings Account (MSA): The second part is a special type of savings account. The Medicare MSA Plan deposits money into your account. You can use money from this savings account to pay your health care costs before you meet the deductible.

How do MSA Plans work?

Read about basic steps for using a Medicare MSA Plan.

What's covered?

Medicare MSA plans cover the Medicare services that all Medicare Advantage Plans must cover. In addition, some Medicare MSA plans may cover extra The health care items or services covered under a health insurance plan. Covered benefits and excluded services are defined in the health insurance plan's coverage documents.

" style="text-transform:lowercase;" class="inline hover">Benefits for an extra cost, like:

Dental
Vision
Hearing
Long-term care not covered by Medicare

Contact plans in your area for more information on what extra benefits they cover, if any.

Medicare MSA Plans don't cover Medicare Part D prescription drugs

If you join a Medicare MSA Plan and need drug coverage, you'll have to join a Medicare Prescription Drug Plan. To find available plans in your area, you can:

Visit the Medicare Plan Finder.
Call us at 1-800-MEDICARE (1-800-633-4227).
Look at the back of your "Medicare & You" handbook.

MSA plans don’t charge a premium, but you must continue to pay your Part B premium. You may pay a premium if you use these services.

HHS is committed to making its websites and documents accessible to the widest possible audience, including individuals with disabilities. We are in the process of retroactively making some documents accessible. If you need assistance accessing an accessible version of this document, please reach out to the guidance@hhs.gov.

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.