Adam, when we last spoke you mentioned the Medicare Savings Account (LASSO) plans. Could you clarify which Doctors and Hospitals I can use? Also, we have some concerns about what happens if we spend through the amount deposited on the Medical credit card?
With a Medicare Savings Account (MSA) you can use any doctor or hospital that accepts Medicare. This is a huge advantage when comparing the MSA plans to a traditional Medicare Advantage (MA) plan. HAs typically have strict networks and higher payments for going outside that network. With an MSA you can go to whichever doctor you choose and you can do so without a referral. The ability to go to any doctor while also having a $0 premium is one of the main reasons why we describe MSAs as a blend of both MA and Medicare Supplement.
So, to recap with an MSA each member is issued a medical credit card with funds deposited on it. For 2021 this deposit will be $2000 for the low-risk option or $3000 for the high-risk option. Once these funds are used up the client will owe up to the deductible which is $5000 for low risk and $8000 for the high risk. Thus, the member responsibility is either $3000 or $5000. There are a couple of different ways to cover these amounts so you aren’t stuck with having to come up with thousands of dollars at a time. There are hospital income policies that will pay you cash for having to stay in the hospital. There are critical illness policies that will pay a lump sum for a diagnosis of cancer, heart attack, stroke, or other major ailments. And these policies are relatively inexpensive. Often times they can cost less than $50 per month. So, this means that you can take out a policy to cover the member responsibility AND a Part D medicine coverage for less than the premium of Plan G Medicare Supplement. Oh, and you will have access to the FULL Medicare network. And also note that any unused funds on your Medicare credit card roll over to the next year so if you have a couple of healthy years where you don’t go to the doctor it is possible to have the full deductible saved up. At that time you can drop the hospital income or critical illness policy and you have a $0 premium Medicare Health plan, $0 out of pocket and you can go to any doctor you want.
