Medicare MSAs: An Update

A couple weeks ago, we posted on a new Medicare Supplement model:

"Medicare MSA's appear to be the post-65 version of what we typically see as Health Savings Accounts (HSAs) in the pre-65 market, with some interesting twists."

At the time, we wondered if beneficiaries could also toss in additional dollars on their own, and reached out to the Lasso folks for clarification.

Well, they were kind enough to reply:

"Henry,

Thank you very much for your interest and question!

Currently, Medicare MSA deposits can only be made by the Medicare Advantage contract holder (Lasso Healthcare) to the MSA plan members’ accounts.  There have been proposals to Congress to change this law and allow individuals to contribute also, but at this time only Lasso Healthcare can contribute to the MSA plan members’ account each year.

The good news is that the deposit is very large relative to health savings account limits, occurs as a lump sum at the beginning of the benefit period and continues annually as long as the individual stays in the MSA plan.

Thanks again and have a great day!"

Nope, thank you!

We'll keep track of this and update as appropriate.

[Hat Tip: Jim Handlan]