Few Medicare enrollees use tax-free medical savings accounts that accrue interest and can be used for medical expenses, CNBC reports. Here are four notes:
1. People enrolled in high-deductible Medicare Advantage plans are eligible to participate, but less than 1 percent of Medicare Advantage enrollees use an MSA. Out of 19 million Medicare Advantage enrollees, 5,000 use an MSA.
2. Only a handful of firms in the U.S. offer Medicare MSAs, including MVP Health Care, Security Health Plan of Wisconsin and Menasha, Wis.-based Network Health. The limited availability of these plans makes it harder for people to buy them, but insurers need more members to cover administrative and start-up costs.
3. President Donald Trump's budget included a proposal that would permit Medicare beneficiaries to make contributions to MSAs with the same limitations as contributions to health savings accounts.
4. If Congress passes Trump's proposal, it could raise public awareness about MSAs. However, seniors still might be risk-averse when it comes to the plans, according to Rob Pipich, a principal and consulting actuary for Milliman.