MSA 101
Your guide to Medicare MSA plans
A high-deductible Medicare Advantage plan paired with a savings account that's funded for you each year. Only Medicare and/or your employer can add money — unless you're self-employed, then Medicare and you fund it as the employer of one.
What is a Medicare MSA?
Medicare's closest thing to an HSA
A Medical Savings Account (MSA) is a unique type of Medicare Advantage (Part C) plan. It combines a high-deductible health plan with a special medical savings bank account. If you're familiar with a Health Savings Account (HSA) from an employer, an MSA is Medicare's closest equivalent.
Wondering if an MSA is right for you? Talk with Donal-
Complete Part A & B coverage
It covers all Medicare Part A (hospital) and Part B (medical) services.
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Prescription freedom
MSAs don't include drug benefits, so you're free to choose a standalone Part D plan that fits your exact medications.
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Funded by Medicare
It is the only Medicare plan type where money from Medicare is deposited directly into an account for you to spend, save, or invest on healthcare.
How your MSA works
MSA your way in 5 easy steps
MSAs operate straightforwardly — without the hassle of confusing copays or coinsurance.
The deposit is made
Only Medicare or your employer can fund your MSA — unless you're self-employed or a business owner. Then, no matter your company's size, Medicare and you fund it as the employer of one.
You call the shots
You decide exactly how to spend, save, or invest that money.
Paying for care
You pay plan costs under the deductible — using your MSA funds, your own funds, or a combination of both.
Full coverage kicks in
Once you reach the deductible, your plan covers any additional medical costs for the rest of the year.
Keep what you save
Any money left at year-end is yours to keep for future use, rolling over tax-free to build a healthcare safety net.
The top benefits
Why members like the MSA
Total provider freedom
No network. See any doctor, hospital, or specialist in the U.S. that accepts Medicare payments.
No red tape
No prior authorizations or referrals required by the plan to get the care you need.
Triple tax advantage
Just like an HSA, your MSA funds are deposited tax-free, grow tax-free, and are spent tax-free on qualified medical expenses.
Flexible billing
Your provider files the claim first. If you have not met your deductible, you are billed with flexible repayment options — more time to pay instead of paying at the visit.
Is an MSA right for you?
A great fit for savers and proactive care seekers
MSAs are popular with people who value control and flexibility. This plan might be a perfect fit if you:
- Want total control over your healthcare decisions
- Travel frequently and need nationwide access to doctors
- Have three or fewer well-managed chronic conditions
- Want to save unused healthcare dollars today to build wealth for future medical needs
See plan designs for individuals, the self-employed, chambers, and employers on our available plans page.
Basic eligibility requirements
To join an MSA plan, you must:
- Enrolled in Medicare Parts A and B
- Live in the U.S. at least 183 days a year
- Not eligible for Medicaid
- No duplicate coverage (such as TRICARE or VA benefits)
One-stop learning
Mini MSA 101 video course
Six short lessons walking you through the fundamentals of Medicare MSA plans — from how they work to who they're for. Pick a lesson to watch.
Lesson 1
MSA and Medicare
Medicare's closest thing to an HSA
A Medical Savings Account is a type of Medicare Advantage (Part C) plan that pairs a high-deductible health plan with a dedicated savings account — the closest Medicare equivalent to an employer HSA.
- Covers all Medicare Part A (hospital) and Part B (medical) services
- A $0 monthly plan premium
- Medicare deposits money into your account each year
Is an MSA right for you?
Let's see if an MSA fits
Donal will walk you through how the plan works for your situation — at no extra cost, since premiums are regulated by law.