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 have flexibility in choosing 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.

  1. High-deductible health plan: The first part is a special type of high-deductible Medicare Advantage Plan (Part C). The plan will only begin to cover your costs once you meet a high yearly deductible, which varies by plan.
  2. 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 choose to 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?

In addition to the Medicare services that all Medicare Advantage Plans must cover, some plans may cover extra benefits for an extra cost, like:

  • Dental
  • Vision
  • 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, visit the Medicare Plan Finder, call 1-800-MEDICARE (1-800-633-4227), or look at the back of your “Medicare & You” handbook. *  copied from   * 

Links & Resources

Medicare.Gov MSA  

CMS.Gov Fact Sheet  


Medicare and You 2020 #10050  
Everything you want to know - Read Along

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2 comments on “Medicare Savings Accounts – MSA

  1. With this plan does medicare (medicare advantage msa) pay for 80% of the bill and I pay the full 20% of whats left?

    I am confused.

    I know I pay the 100% until my deductible is reached, but is that the 100% of the 20% that medicare does not pay?

    • We don’t have Medicare MSA’s in California, so let me just cut and paste the answer from Medicare.Gov

      10 steps to use a Medicare MSA Plan

      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 deductible .

      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 out-of-pocket costs .

      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.

      If you have further questions, we will need you to send us ALL the information from your plan.

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