Medicare Advantage Medical Savings Accounts (MSAs)
Discover the benefits of an MSA and how it works.
Eligibility
A Medicare Advantage MSA Plan has two parts.
- A qualifying high-deductible health plan: You must be enrolled in a qualifying high-deductible Medicare Plan.
- Medicare Advantage Medical Savings Account (MSA): You must open an MSA through your health plan provider. Your provider will then open your account with Optum Bank, Member FDIC. Your health plan provider will then deposit money into your account.
Who can get an MSA? Most people with Medicare Part A and Part B can join a Medicare Advantage MSA Plan. However, you cannot join if you:
- Are eligible for Medicaid
- Currently receive hospice care
- Live outside of the United States more than 183 days per year
- Have TRICARE or Department of Veterans Affairs benefits
- Have health coverage that would cover the Medicare Advantage MSA Plan deductible, including benefits from an employer or union retiree plan
- Are a retired employee of the federal government and are in the federal employee health benefits program (FEHBP)
How it works
- Join: Enroll in a qualifying high-deductible Medicare Advantage MSA Plan.
- Set up your MSA: Next, you’ll select your health plan provider and the provider will open your account with Optum Bank®.
- Get your money: Medicare will deposit a certain amount of money each year for your health care.
- Use: Once money is deposited, you can use it to pay for your qualified medical expenses, including costs not covered by Medicare. Money in your MSA cannot be used for qualified medical expenses of any other person, including a spouse.
- Pay your deductible: If you use all of your MSA funds, then you’ll pay out-of-pocket until you reach your deductible. After reaching your deductible, your plan then pays Medicare-covered services.
Tax benefits
- Qualified medical expenses: Use MSA funds to pay for your qualified medical expenses, like doctor’s visits.
- Tax-free money: Your MSA money isn’t taxable as long as it’s used for your qualified medical expenses.
- Tax-free interest: Interest earned on MSA money isn’t taxable if it’s used for your qualified medical expenses.
Self-directed mutual fund investment options are made available through the services of an independent investment advisor, or your plan sponsor. Discretionary advisory services are provided by Betterment LLC, an SEC-registered investment adviser, with associated brokerage transactions provided by Betterment Securities, Member FINRA/SIPC. For details and disclosures visit betterment.com. The Schwab Health Savings Brokerage Account is offered to certain account holders through Charles Schwab & Co., Inc., Member FINRA/SIPC. For details and disclosures, visit schwab.com. Brokerage services are offered to certain accountholders through TD Ameritrade, Inc., Member FDIC/SIPC and a subsidiary of The Charles Schwab Corporation. For details and disclosures, visit tdameritrade.com.
Orders are accepted to effect transactions in securities only as an accommodation to HSA owners. Optum Financial and its subsidiaries are not broker-dealer or registered investment advisors and do not provide investment advice or research concerning securities, make recommendations concerning securities, or otherwise solicit securities transactions.
Health savings accounts (HSAs) are individual accounts offered through Optum Bank®, Member FDIC, or ConnectYourCare, LLC, an IRS-Designated Non-Bank Custodian of HSAs, each a subsidiary of Optum Financial, Inc. Neither Optum Financial, Inc. nor ConnectYourCare, LLC is a bank or an FDIC insured institution. HSAs are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. State taxes may apply. Fees may reduce earnings on account.
Flexible spending accounts (FSAs), dependent care assistance programs (DCAPs), health reimbursement arrangements (HRAs), Commuter and Parking Benefits, Tuition Assistance Plans, Adoption Assistance Plans, Surrogacy Assistance Plans, Wellness Benefits, and Lifestyle Accounts (collectively, “Employer-Sponsored Plans”) are administered on behalf of your plan sponsor by Optum Financial, Inc. or ConnectYourCare, LLC (collectively, "Optum Financial") and are subject to eligibility and restrictions. Employer-Sponsored Plans are not individually owned and amounts available under the Employer-Sponsored Plan are not FDIC insured. This communication is not intended as legal or tax advice. Federal and state laws and regulations are subject to change. Please contact a legal or tax professional for advice on eligibility, tax treatment, and restrictions. Please contact your plan administrator with questions about enrollment or plan restrictions.
Google Play and the Google Play logo are trademarks of Google LLC. Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc., registered in the U.S. and other countries.
The promotional code OPTFSA7, OPTHSA5 and OPTHRA7 cannot be applied to previously placed orders, and cannot be combined with other promotional codes. Additionally, the code cannot be used for prescription drugs or virtual care visits. Promotional codes are not transferable or redeemable for cash or credit. To apply a promotional code you must enter it prior to completing the order.
Free and expedited shipping offers do not apply to shipping outside of the contiguous United States. Additional shipping restrictions may apply.
The Optum Store is an affiliate of the UnitedHealth Group family of companies.
Your employer sponsored plan may exclude reimbursement for certain categories of items. Check your plan document and summary plan description or contact your benefits department for specific coverage details.
© 2022 Optum, Inc. All rights reserved