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10 steps to use a Medicare MSA Plan

  1. Choose and join a high-deductible Medicare MSA Plan.
  2. You set up an MSA with a bank the plan selects.
  3. Medicare gives the plan an amount of money each year for your health care.
  4. The plan deposits some money into your account.
  5. You can use the money in your account to pay your health care costs, including health care costs that aren't covered by Medicare. When you use account money for Medicare-covered Part A and Part B services, it counts towards your plan's deductible.
  6. If you use all of the money in your account and you have additional health care costs, you'll have to pay for your Medicare-covered services out-of-pocket until you reach your plan's deductible.
  7. During the time you're paying out-of-pocket for services before the deductible is met, doctors and other providers can't charge you more than the Medicare-approved amount.
  8. After you reach your deductible, your plan will cover your Medicare-covered services. Read information from the plan for details about out-of-pocket costs.
  9. Money left in your account at the end of the year stays in the account, and may be used for health care costs in future years.
  10. If you use funds from your account, you must include this special form [PDF, 89.4 KB] with information on how you used your account money when you file taxes.