MSA Plans

A Medicare Savings Account (MSA) plan is a unique type of Medicare Advantage plan that combines a high-deductible health plan with a tax-free savings account that Medicare funds annually. It's not right for everyone — but for the right person, it offers significant financial flexibility.

How an MSA Plan Works

1️⃣

Medicare Deposits Money Into Your Account

Each year, the MSA plan deposits a set amount of money into a bank account in your name. This is funded by Medicare — not by you. The deposit amount varies by plan and is typically several hundred to a few thousand dollars annually.

2️⃣

You Use the Account for Healthcare Costs

You use the MSA funds to pay for Medicare-covered healthcare services until you reach your plan's deductible. The deductible is high — often $5,000–$10,000 or more — so the account may not cover all your costs before it's met.

3️⃣

After the Deductible, the Plan Pays

Once you've spent enough out-of-pocket to meet the high deductible, the MSA plan covers 100% of Medicare-covered services for the rest of the year — like any Medicare Advantage plan.

4️⃣

Unspent Funds Roll Over

If you don't spend all the money in your MSA account during the year, the unused balance rolls over to the next year and continues to grow. The account is yours to keep, even if you later leave the plan.

MSA vs. Standard Medicare Advantage

	MSA Plan	Standard MAPD
Monthly plan premium	Usually $0	Varies ($0–$100+)
Annual savings account deposit	Yes — Medicare funds it	None
Deductible	High ($5,000–$10,000+)	Low or none for most services
Drug coverage included	No — must enroll in separate Part D	Yes (most MAPD plans)
Provider network	May be more flexible (PPO-style)	HMO or PPO depending on plan
Other insurance allowed	No — cannot have Medigap or employer retiree coverage while on MSA	Generally yes (coordination rules apply)
Best for	Generally healthy people who want to build savings; those comfortable with higher deductible risk	Most Medicare beneficiaries

Who MSA Plans Are Right For

MSA may be a good fit if you…

✓Are generally healthy and rarely use healthcare services
✓Want to build a tax-free medical savings balance over time
✓Don't have Medigap or other insurance that conflicts
✓Don't need regular prescription drug coverage through your Medicare plan
✓Are comfortable paying out of pocket early in the year before the deductible is met

MSA is likely NOT a good fit if you…

✗Have chronic conditions or high healthcare utilization
✗Take multiple prescription medications (no drug coverage included)
✗Currently have a Medigap policy (you must drop it to enroll)
✗Have employer retiree coverage (generally not allowed to combine)
✗Can't comfortably absorb a large out-of-pocket cost in a given year

Important Restrictions and Rules

No drug coverage

MSA plans do not include Part D coverage. You must enroll in a standalone Prescription Drug Plan (PDP). Check that your medications are covered before enrolling.
No other insurance allowed

While enrolled in an MSA plan, you cannot have a Medigap policy, employer group retiree coverage, or most other types of supplemental insurance.
Funds are only for Medicare-covered expenses (tax-free)

If you use MSA funds for non-Medicare-covered expenses, you'll pay income tax on that amount plus a 50% tax penalty. Keep receipts and records.
Enrollment through AEP

MSA plans are available only during the Annual Enrollment Period (October 15–December 7). You cannot switch to an MSA plan at other times unless you qualify for a Special Enrollment Period.
Must disenroll if gaining other coverage

If you gain employer or union coverage that would conflict with your MSA plan, you must disenroll from the MSA plan.

🧀

MSA Plan Availability in Wisconsin

MSA plans are available in all Wisconsin counties. The specific plans offered — including deposit amounts and deductibles — vary by plan and change annually.

The best way to compare available MSA plans is to check Medicare Plan Finder at Medicare.gov or speak with a local agent who can walk you through your options.

Is an MSA Plan Available in Your County?

We can check what MSA plans are available where you live, explain the tradeoffs, and help you compare it against other Medicare Advantage and Supplement options.

Check My Options