Joining a Medical Savings Account plan

Who can join a Medicare MSA Plan? 

A Medicare MSA Plan is a type of Medicare Advantage Plan. Read about joining a Medicare Advantage Plan

Who can’t join a Medicare MSA Plan?

You can't join a Medicare MSA Plan if any of these apply to you:

  • You have health coverage that would cover the Medicare MSA Plan deductible. This includes benefits [glossary] under employer or union retiree plans .
  • You get benefits from the U.S. Department of Defense TRICARE ) or the U.S. Department of Veterans Affairs.
  • You're a retired Federal government employee and part of the Federal Health Benefits Program (FEHBP).
  • You're eligible for Medicaid.
  • You have End-Stage Renal Disease (ESRD). However, even if you have ESRD, you can join a Medicare MSA Plan if both of these apply:
    • You're a former enrollee in a Medicare Advantage Plan that left Medicare.
    • You haven't joined another Medicare Advantage Plan.
  • You're currently getting hospice care.
  • You live outside the U.S. more than 183 (total) days a year.

How do I join a Medicare MSA Plan?

Contact the MSA Plan you want for enrollment information and about how to join. The plan will tell you how to set up your account with the bank chosen by the plan. You must set up an account before your enrollment can be processed. You’ll get a letter from the plan telling you when your coverage begins.

What if I chose a Medicare MSA Plan for the first time & changed my mind

You can cancel your enrollment by December 15 of the same year. You still only have until December 7 to join another health or drug plan. After December 7 and up to December 15, you can only return to 

Original Medicare

.

Can my Medicare MSA Plan ever cancel my enrollment?

Your plan can cancel your enrollment if one of these events happen:

  • You get Medicaid [Glossary] .
  • You enroll in a Federal Employee Health Benefits Program (FEHBP) plan.
  • You get health care benefits [glossary] from the Department of Defense ( Tricare ) or the Department of Veterans Affairs (VA).
  • You get benefits (like an employer or union group health plan) that cover all or part of the yearly MSA deductible permanently.
  • You move outside of the service area of the plan, or are temporarily out of the service area for longer than 6 months.

What happens to the money in my account if I leave the plan before the end of the year?

No more money will be added to your account. You’ll need to pay part of the most recent yearly deposit (based on the number of months left in the current calendar year) back to Medicare.

If I die, will my spouse be able to use the money in my account?

Any funds in your account that were deposited before the current calendar year are part of your estate. Part of the most recent deposit (based on the number of months left in the current calendar year) will have to be paid back to Medicare.

What if my beneficiary isn't my spouse?

If you name a beneficiary for your account who isn’t your spouse, the money in it after your death is counted toward that person’s gross income when he or she files that year’s income tax return. If your estate gets the money in your account, it’s counted as gross income on your final tax return.