AHIP Practice Exam

What does a Medical Savings Account (MSA) plan under Medicare Advantage combine?

1. A high deductible health plan with a limited spending account.

2. A high deductible health plan and a savings account for health expenses.

3. A low-deductible health plan and regular checking account.

4. A standard health insurance plan with no savings component.

The correct answer is: A high deductible health plan and a savings account for health expenses.

A Medical Savings Account (MSA) plan under Medicare Advantage combines a high deductible health plan with a savings account specifically designated for health expenses. The key components of this type of plan are that it provides coverage for healthcare services while requiring beneficiaries to have a high deductible. The savings account allows individuals to contribute pre-tax dollars that can be used to pay for qualified medical expenses, making it a flexible and beneficial option for managing healthcare costs. This structure offers a way for beneficiaries to cover their deductible while also providing a tool for saving money specifically for health-related expenses. The high deductible encourages careful spending while the savings account provides a financial buffer for those expenses, creating an integrated approach to managing health care costs for those enrolled in or eligible for Medicare.