A recent Medicare executive order signed by President Donald Trump on Oct. 3 aims to expand beneficiaries' access to medical savings accounts, according to CNBC.
Not many details were revealed about the initiative, which would likely make tax-advantaged savings accounts easier for Medicare Advantage members to use. As Medicare Advantage grows in popularity, only about 6,000 members use medical savings accounts in combination with a high-deductible Medicare Advantage plan.
Under current law, Medicare beneficiaries can't contribute money to these types of savings accounts. The insurer offering the plans makes a contribution that members can withdraw tax-free to cover medical expenses.
At this point, it's still unclear what regulatory changes would be proposed to boost access to medical savings accounts, according to CNBC. In his 2020 budget proposal, President Trump proposed allowing Medicare beneficiaries to make contributions in savings accounts with annual limits of $3,500 per individual and $7,000 per family, with those age 55 and older able to put an additional $1,000 per year aside. These limits are the same for commercial health savings accounts.
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