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This is a test program
for 390,000 eligible Medicare beneficiaries. You choose a Medicare Medical Savings Account
(MSA) Health Policy - a health insurance policy with a high deductible. Medicare pays the
premium for the Medicare MSA Health Policy and makes a deposit to the Medicare MSA that
you establish. You use the money deposited in your Medicare MSA to pay for medical
expenses. If you don't use all the money in your Medicare MSA, next year's deposit will be added to your balance. Money can be withdrawn
from a Medicare MSA for non-medical expenses, but that money will be taxed. If you spend
too much of the money on non-medical expenses, you may have to pay an additional tax.
Medicare MSA Plans first become available in November 1998. You can only sign up for a Medicare MSA Plan in November of each year,
or during special enrollment periods. If you enroll in a Medicare MSA Plan, you must stay in
it for a full year.
Cost: You pay the Part B premium ($43.80 in
1998). You use the money in your Medicare MSA to pay for medical expenses. Unlike other
Medicare health plans, the Medicare program does not limit what providers can charge you above the amount paid by your Medicare MSA Plan. If you use all your Medicare MSA
money, you are responsible for paying all of your medical expenses until you meet the deductible for your Medicare MSA Health Policy. The deductible can be considerably higher
than those of other Medicare health plans. Your Medicare MSA can help pay these costs.
Providers: Depending on the Medicare MSA Health Policy you
choose, you may be able to go to any doctor or hospital, or you may be limited to a network
of providers.
Extra Benefits: Money in your Medicare MSA pays for things that
Original Medicare covers, plus other services it does not cover. A Medicare MSA
Health Policy may offer additional benefits Original Medicare doesn't cover, but
it does not pay for them until you meet your annual deductible.
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