A Health Matching Account (HMA) is a guaranteed way you can lower the cost of your medical expenses. It has similar qualities to a Health Savings Account (HSA) and Medical Savings Account (MSA) but works in a unique way.
How HMAs Work
A Health Matching Account allows you to make monthly contributions that are then matched up to a certain percentage each month. For every dollar you contribute, you can be given up to two dollars in medical benefits. You can use your HMA to pay for health care expenses, including deductibles, copays, coinsurance costs, and procedures your insurance doesn’t cover.
There are four steps involved in using a Health Matching Account.
First, you choose which HMA product you want. You’ll make your decision based on what you want to pay each month and your target balance. Target balances range from $2500 to $60,000, and a monthly payment ranges from $40 to $725. Choose your product and then begin making monthly contributions.
Next, watch your account balance grow! As the months progress, you’ll see a bigger match on your contributions. Your medical benefits account will never expire. Instead, the account balance will continue to roll over month-to-month and year-to-year.
As an example, let’s say you chose the $10,000 HMA plan. Your monthly contribution amount would be approximately $140 per month for 35 months, which adds up to $4900. By that time, your total account balance would be the target amount of $10,000.
Next, once you’ve started making contributions, you can use your benefits to pay for medical services. You’ll be issued a pre-paid Visa card that you can swipe at the point of service. (Elective services require you to mail in your receipts before the plan reimburses you.)
Once you have met your target balance, you are no longer required to make monthly payments. You will still have a monthly maintenance fee, however. If you use your benefits, you can revert to making monthly payments to regain your full account balance.
For example, if you have capped your account but then have a $4600 hospital visit, you can return to making your $140 monthly contribution to rebuild your account balance. It would only take 12 payments, or $1680, to be back at your target amount of $10,000.
How to Use an HMA with Your Health Insurance
You can use a Health Matching Account for yourself or use it to pay for the medical expenses of your whole family. Some of the things you can pay for include:
- Ambulance services
- Laboratory services
- Hospital equipment and supplies
- Doctor visits
- General and specialized dental services
- Osteopathic physicians
- Chiropractic services
- Optometrists and ophthalmologists
- Contact eyeglasses and contact lenses
- Chiropodists and podiatrists
- Hospital costs
- Medical services
- Hearing aid sales, service, and supply stores
- Orthopedic goods and prosthetic devices
- Fertility procedures
- Lasik eye surgery
Why Medicare Beneficiaries Might Choose Health Matching Account Services
There are a few reasons you may want to invest in an HMA if you are on Medicare. First, as you know, Original Medicare and Medicare supplement do not cover certain procedures like routine dental, vision, and hearing services. It also won’t help pay for any services that Medicare hasn’t approved. If you have an HMA, you can use the funds to pay for these types of services. You can also use the savings account to pay for your deductibles and coinsurance costs.
If you take expensive prescription medications, a Health Matching Account can also be used to pay for your prescription refills. Even if you have a Part D prescription drug plan, you’ll still have coinsurance costs for your medications. And if you’re someone who takes expensive drugs, you know all about the Part D donut hole – a gap in coverage that makes your prescriptions even more expensive. An HMA can alleviate these costs.
A Health Matching Account is also helpful for those who don’t want to pay high monthly premiums for insurance – Medicare-related or not. If you have access to an HMA, you may be able to choose a high-deductible plan without worrying about the risk of needing to meet that deductible. There are several high-deductible Medicare plans on the market, and pairing an HMA with one of them would be a great option for many beneficiaries. Or, maybe you don’t want coverage outside of Original Medicare at all. While an HMA is not an insurance plan, it may afford you the option of not enrolling in other coverage.
If you’re interested in hearing more about health matching account services, let us know! Call one of our licensed insurance agents at 1-855-65-YEARS OR 662-844-3300.
Can I use my HMA to pay insurance plan premiums?
No, like other medical savings accounts, you cannot use an HMA to pay premiums.
Can I add my spouse to my HMA?
Yes, you can add a spouse and children to your HMA for a small additional fee.
Is an HMA a form of health insurance?
No, an HMA is not health insurance.