A Medicare+Choice MSA is an Archer MSA designated by Medicare to be
used solely to pay the qualified medical expenses of the account
holder. To be eligible for a Medicare+Choice MSA, you must be eligible
for Medicare and have a high deductible health plan (HDHP) that meets
the Medicare guidelines.
A Medicare+Choice MSA is a tax-exempt trust or custodial savings
account that you set up with a financial institution (like a bank or
an insurance company) in which the Medicare program can deposit money
for qualified medical expenses. The money in your account is not taxed
if it is used for qualified medical expenses, and it may earn interest
or dividends.
An HDHP is a special health insurance policy that has a high
deductible. You choose the policy you want to use as part of your
Medicare+Choice MSA plan. However, the policy must be approved by the
Medicare program.
Note.
At the time this publication went to print, no HDHP had been
approved by Medicare. Therefore, no Medicare+Choice MSAs have been
established to date.
Medicare+Choice MSAs are administered through the Federal Medicare
program. The Health Care Financing Administration (HCFA) has more
information about this program. You can get this information by
calling 1-800-318-2596. You can also reach HCFA
through the Internet at www.medicare.gov.
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