- Choose and join a high-deductible Medicare MSA Plan.
- You set up an MSA with a bank the plan selects.
- Medicare gives the plan an amount of money each year for your health care.
- The plan deposits some money into your account.
- 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
- 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.
- 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.
- After you reach your deductible, your plan will cover your Medicare-covered services. Read information from the plan for details about
- 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.
- 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.