Traditional Medicare plans can be terribly expensive. They’re also quite confusing with regard to what each one covers—Parts A, B, and D, each has its own list of medical needs, co-pays, deductibles, and gaps in coverage.
There’s no limit for out-of-pocket spending under these Medicare plans. Along with that, many people have to supplement Medicare with additional plans which cover any gaps left under them.
All in all, the overall costs can be too much for a single person to handle. Supplement plans can cost as much as $300 per month, while the premium for Part B is around $135.5 per month. Part D can cost an average of $34 per month, which increases depending on the kind of drugs you require.
A Tax-Free Account For Medicare
If you are 65 and looking to save money on your Medicare plan, you might want to look into the Medicare Medical Savings Account (MSA). As of February 2018, 5000 Americans registered for Medicare were using this account to pay for their Medicare costs.
How Does It Work?
You create an account with your insurance provider with a one-time deductible of $3,600. The government adds $1,020 into your medical account and after that, you don’t have to pay for any medical expense for the whole year. The most that you have to pay out of pocket is $2,580. The leftover amount in your account automatically rolls over to the next year and keeps growing with the interest payments.
The funds deposited in the account are tax-free as is the interest payment on them. Beneficiaries are allowed to withdraw as much money as they need, provided it’s used for qualified medical expenses.
The best part is that Medicare seeds the account with additional cash each year.
What’s The Catch?
The only requirement for qualifying for a Medicare Medical Savings Account is that you need to be enrolled in a high-deductible Medicare Advantage Plan and have enough funds for the initial deposit. As of 2018, about 19 million Americans are enrolled in Medicare Advantage plans. Most people can’t get the medical account because they lack the funding for the start-up cost.
The only catch is that you can’t deposit your personal funds into a Medicare Savings Account. Once you are on Medicare, you cannot contribute to the account to get additional tax-free interest as some people hope. But you have every right to spend the funds in your account for any out-of-pocket Medicare costs.
Looking for medicare plans in NY? For more information on Medicare MSAs or other Medicare-related queries, get in touch with the expert at Seniors for Medicare. A leading Medicare insurance agency, they provide access to top medical insurance providers in the country and give expert advice to help you find the ideal Medicare plans and coverage for your health needs!
Call them now at 800.276.1753 and book a free consultation!
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