Is an MSA Like an Employer HSA Plan?

Morning Toni:

Never have I seen this question asked in your column.  I am leaving employer’s insurance and have an HSA that has a $5000 deductible before the group health plan will begin to pay.  I would like to know if there is a Medicare plan that is like my company’s HSA plan.  Our premiums are very affordable with more doctors/hospitals than the company group health insurance with a typical health insurance deductible.

When I retire in January, I will be on a fixed income with my Social Security check and really do not want to go the Medicare Advantage HMO route because I do not like an insurance company telling where and if I can use certain doctors or facilities if I have a serious health issue.  I’ve read about the MSA in the Medicare & You handbook but cannot find any information on MSA (Medical Savings Account) in all of the marketing material that has been mailed to me.

Is there an MSA plan in Texas and what is the premium?  How can I get information on this type of plan?  I have a few friends who have an Aetna PPO Medicare Advantage plan that is leaving the Houston area and they are having problems applying for a Medicare Supplement due to health issues.  I really do not want a Medicare Advantage HMO or PPO plan. I appreciate your time in explaining the plan…Janice from Cypress, TX

Great Question, Janice:

MSA’s are new to the Medicare market with only one MSA company available in Texas. The Medicare Advantage MSA plans name is Lasso.  This MSA plans are unique in the premium, deductible and the maximum yearly out of pocket.

For 2020, most of Texas is rated as Region #1 with a $0 premium and a $7400 deductible plus a savings account with a 3240 deposit. You decide what health services to spend your MSA deposit on.  This totals your financial responsibility of $4,160 for 2020.

There are 2 other regions throughout America with Region 2 and Region 3 that also have a deductible, savings account which is deposited yearly and yearly maximum out of pocket.  To find out what your area is outside of Texas call 832/519-8664 and a Toni Says® Medicare hotline agent can answer your MSA or Medicare annual enrollment questions.

MSAs do not cover prescription drugs, so beneficiaries can opt to join a stand-alone Prescription Drug Plan.

Quick Facts about MSA plans for 2020 are:

• Medicare MSA is a high deductible plan.
• MSA is a Medicare Advantage plan.
• MSA monthly premium is $0.
• Use any Medicare provider or facility nationwide.
• MSA plan deposits money into your MSA savings account annually
• Meet your MSA deductible and pay nothing for Medicare Part A and B costs.
• Funds are tax free for qualified medical expenses
• Enroll in a stand-alone Medicare Part D plan to keep from receiving Medicare Part D penalty.

While an MSA may not be right for every Medicare beneficiary, those that wish to spend little or no premium dollars while staying in control of your healthcare choices. Exploring your options with an MSA, may give you a peace of mind with

There are specific Medicare rules regarding changing Medicare plans.  Call the Toni Says Medicare Hotline at 832-519-8664 or visit the Tonisays.com website at www.tonisays.com.

Toni King, author of the Medicare Survival Guide® is giving a $5 discount on the  Medicare Survival Guide® Advanced book to the Toni Says Medicare column readers at www.tonisays.com.