What is the difference between a Medical Savings Account (MSA) and a Health Savings Account (HSA)?

Question

Jeremy Harkins · Accepted Answer

A Health Savings Account, or HSA, is typically paired with a qualifying high-deductible employer or individual health plan before Medicare. You, your employer, or both can contribute money to it, and the money can grow and roll over from year to year.

Once you enroll in Medicare, however, you can no longer contribute to an HSA. You can keep the money already in the account and continue using it for qualified medical expenses. (irs.gov)

A Medicare Medical Savings Account, or MSA, is different. It is actually a type of Medicare Advantage plan that combines a high-deductible health plan with a savings account.

With an MSA, you do not contribute money to the account yourself. Medicare provides money to the MSA plan, and the plan deposits a set amount into your account each year. You can use those funds toward healthcare expenses, and unused money can roll over. (medicare.gov)

Another important difference is prescription coverage. Medicare MSA plans do not include Part D, so if you want prescription coverage, you generally enroll in a separate Part D plan. (medicare.gov)

The simplest way to remember it is:

HSA: your healthcare savings account before Medicare, with contributions from you or an employer.

Medicare MSA: a Medicare Advantage plan where the plan deposits Medicare-funded money into an account to help you manage a high deductible.

They sound similar, but they work very differently.

Mark Bilgere · Answer

An HSA is a type of medical savings account. It is funded by you and/or your employer and it receives special IRS treatment. You must be in a qualifying High Deductible Health plan to contribute to an HSA.

An MSA is a special type of Medicare advantage plan. It has two parts. A high Deductible advantage plan and a savings account. The Insurance company deposits money into the savings portion, but you are not allowed to contribute any of your own money. You use that money and your own money to reach the deductible amount and then at that point the Advantage plan starts paying according to the plan structure.

Kenneth Parsons · Answer

MSA and HSA both have high deductibles. MSA is tied to a part C. HSA is for people under 65 in a High deductible plan. MSA is funded by Medicare. HSA is funded by the individual or the company that the individual works for.

Answered by Kenneth Parsons on August 20, 2026

Agent Licensed in NM, AZ & TX

Answered by Kenneth Parsons Medicare Insurance Agent

Shawn Lee · Answer

An HSA is funded by you or your employer with a qualifying health plan. A Medicare MSA is a Medicare Advantage plan where Medicare funds an account to help pay your healthcare costs.

Andrew Zurbuch, MBA · Answer

A Medical Savings Account is a Medicare Advantage plan.  A type of Medicare health plan offered by a private insurance company that works 
with Medicare. Medicare Advantage Plans provide all of your Part A & Part B
benefits with some exclusions where claims wouldn’t be covered.
The Medicare Advantage types include
• Health Maintenance Organizations
• Preferred Provider Organizations
• Private Fee-for-Service Plans
• Special Needs Plans
• Medical Savings Account Plans.

A Health Savings Account is a high deductible health plan, a HDHP. Health insurance with a savings account component. If your on Medicare then you don't need a HDHP. You could get a Medicare Advantage plan. Please consult with a Broker. 

Source: Medicare & You 2026.

Plans are insured or covered by a Medicare Advantage (HMO, PPO and PFFS) organization with a Medicare contract and/or a Medicare-approved Part D sponsor. Enrollment in the plan depends on the plan’s contract renewal with Medicare. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare to get information on all of your options.

Marcia West · Answer

Once a person qualifies for Medicare they can no longer contribute to a Health Savings Account (HSA). A Medical Savings Account (MSA) can be set up by someone who is already a Medicare beneficiary.

Steve and Sue Brauer · Answer

This answer is provided in a video format. Watch the agent's video response here: https://medicareagentshub.com/questions/what-is-the-difference-between-a-medical-savings-account-and-a-health-savings-account#steve-brauer

Voss Speros · Answer

This answer is provided in a video format. Watch the agent's video response here: https://medicareagentshub.com/questions/what-is-the-difference-between-a-medical-savings-account-and-a-health-savings-account#voss-speros