Medicare Supplemental Plan and Medicare Medical Savings Account (MSA) Pt 2
Check with all suppliers who accept the Medicare plan.
Don’t include prescription drugs. Meanwhile, you can sign up for a separate prescription drug Medicare Part D plan to pay for your medications.
If you choose to terminate your MSA plan of Medicare, you can do that within the annual enrollment period from October 15th to December 7th of each year. You can terminate the MSA plan in certain situations, for example when you leave the service area of the plan.
Another way to potentially withdraw from the MSA plan is to sign up for a new Medicare Advantage plan at the end of the year.
If you leave Medicare MSA before the end of the year, you may have to return some of the initial payment to Medicare.
How does the Medicare Supplement Plan work?
The Medicare supplement plan, also known as Medigap, is offered by private insurance companies to fill the “donut hole” of the federally sponsored Medicare program, such as co-insurance, co-payments, and deductibles. Medicare supplemental policies are designed to work with Medicare parts A and B. In fact, Medicare supplemental plans do not insure medical costs related to a health plan other than Medicare Parts A and B, so they do not work for MSA plans of Medicare and Medicare Advantage plans.
If you are interested in a Medicare supplement plan, you can purchase it during the open registration period of Medigap. This is the 6-month period when you are 65 and you are enrolled in Part B of Medicare. You are entitled to a supplement right from Medicare for a “guarantee issue”. This means that the insurance company cannot deny your application because of your health or charge a higher premium. The Medicare supplementary plans also have a renewal guarantee, which means that in most cases it is possible to renew the Medicare health care plan every year. If you cancel the Medicare supplement plan, you may not be able to recover it.
Medicare supplementary policies are standardized and many states can have up to 10 plans labeled alphabetically (for example, the Medicare G supplemental plan). Each type of plan insures the same standard services as other plans of the same label, irrespective of the insurance company that provides them.
Additional Medicare plans sold after 2006 do not contain prescription drugs.
Apart from paying for the Medicare Part B premium, you need to pay the Medicare care plan premium. The cost of supplemental Medicare plans may also differ for the same type of plan. For instance, the supplement of Plan G of the Medicare supplement may differ depending on the company where you purchased it. Hence, it may be wise to buy the best price for coverage that meets your needs.
If you sign up for a 2019 Medicare supplement plan and you are currently registered for the Medicare MSA plan, you can end it, go back to Medicare Parts A and B and then apply for a Medicare supplement plan.