New Medicare Flex Fund Accounts and Increased Benefit Flexibility for Seniors
This law establishes new, tax-exempt Medicare Flex Fund Accounts (FFAs) for beneficiaries to cover qualified medical expenses. Most Medicare Advantage plans will be required to contribute a minimum of $400 annually to these accounts, providing citizens with extra funds for health needs. Crucially, beneficiaries gain the option to receive cash payments deposited into their FFA instead of using standard plan coverage for primary care and certain procedures, offering greater choice in healthcare providers.
Key points
Creation of Medicare Flex Fund Accounts (FFAs), a new tax-advantaged savings tool for medical expenses for Medicare enrollees.
Medicare Advantage plans must establish and fund FFAs for enrollees, starting with a minimum annual deposit of $400 (effective 2026).
Introduction of 'patient-driven flexibility,' allowing enrollees to opt for cash payments into the FFA instead of plan coverage for primary care and specific 'shoppable' services.
Enhanced price transparency tools on the Medicare website to help users compare costs and quality of hospital services.
Expired
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