When can I join a Medicare MSA Plan?

You can join a Medicare MSA Plan during the following times:  

--When you first become eligible for Medicare during the period that starts three months before the month you turn age 65 and ends three months after the month you turn age 65. If you have Medicare because you are disabled, you can join three months before and after your 25^th month of getting cash disability benefits.  

--The plan will tell you when your coverage will begin based on when during this period it received your request to enroll. 

--Between November 15 and December 31 of each year. Your enrollment will be effective on January 1 of the following year.

Note: There is a special enrollment period for people who join Medicare MSA Plans sponsored by an employer or union group. This special enrollment period may be used during the employer’s or union’s open enrollment period or at any other time that the employer or union allows enrollment. Your enrollment will be effective no earlier than the first day of the month following your request to enroll.  

How do I join a Medicare MSA Plan?

When and how can I leave a Medicare MSA Plan?

Enrollment is generally for a calendar year. You can choose to leave your current Medicare MSA Plan between November 15 and December 31 of every year. Your request to disenroll during this time will be effective on the following January 1st. However, in certain cases, such as if you enter a nursing home or move; you can leave your plan at other times. If you leave the plan before the end of the year, you may have to repay some of the money in your account. After you request to leave, your plan will let you know, in writing, the date your coverage ends. If you don’t get a letter, call the plan and ask for the date.   

If you want to leave your Medicare MSA Plan at the end of the year and return to Original Medicare, you need to contact your current plan, or call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.  

 If you want to leave your current Medicare MSA Plan at the end of the year to join a new Medicare Advantage Plan at the beginning of the year, simply join the new plan. You don’t need to tell your old plan you are leaving or send them anything. You will be disenrolled automatically from your old plan when your new plan coverage begins. You should get a letter from your new plan telling you when your coverage starts. Joining a Medicare Prescription Drug Plan won’t automatically disenroll you from your Medicare MSA Plan.Note: If you choose a Medicare MSA Plan for the first time and then change your mind, you can cancel your enrollment by December 15 of the same year. Contact the plan by December 15 if you would like to cancel your enrollment.  

Can my Medicare MSA Plan cancel my enrollment?

Your plan must cancel your enrollment if one of the following events occur:

·         You get Medicaid

·         You enroll in a Federal Employee Health Benefits Program plan

·         You get health care benefits from the Department of Defense (TRICARE) or the Department of Veterans Affairs

·         You get benefits that cover all or part of the yearly MSA deductible permanently

·         You move outside of the service area of the plan, or are temporarily out of the service area for longer than six months

What happens to the money in my account if I leave the plan before the end of the year?

If you leave your Medicare MSA Plan before the end of the year, no more money will be added to your account. Part of the most recent yearly deposit (based on the number of months left in the current calendar year) will have to be refunded to Medicare.

Will my spouse be able to use money in the account if I die?

Any funds in your account that were deposited before the current calendar year are part of your estate. Part of the most recent deposit (based on the number of months left in the current calendar year) will have to be refunded to Medicare. 

What if my beneficiary isn’t my spouse?

If you name a beneficiary for your account who isn’t your spouse, the money in it after your death is counted toward that person’s gross income when he or she files that year’s income tax return. If your estate receives the money in your account, it’s counted as gross income on your final tax return.