What is a Medicare Lasso Plan?

The Medicare Lasso Plan is a unique Medicare Advantage Plan, which is growing in popularity. Here we will look at what it is, how it works, what it costs, and the two types of Lasso plans you can get.

Medicare Lasso Plan on the surface

At a glance, a Medicare Lasso Plan is seemingly indistinguishable from a Medicare Savings Account plan. Traditionally, Medicare Advantage’s positives are outweighed by its limitations. In general, Medicare Advantage has a strict network that policyholders must adhere to – choosing to get treatment from providers outside that network results in either higher costs or the out-of-network providers refusing to treat you.

The Medicare Lasso Plan doesn’t restrict policyholders to one network. They can receive treatment from any healthcare provider who accepts Medicare.

Medicare Lasso Plan costs

A person who already has Original Medicare (Parts A and B) can get a Medicare Lasso Plan for a premium as low as $0. However, you still need to pay for Medicare Parts A and B in order to keep this policy. 

There are also two different versions of the Medicare Lasso Plan – Growth, and Growth Plus. Each has its own deductible to meet before the plan’s coverage takes effect. 

If you get the Growth plan, the deductible is $5,000. The Growth Plus plan’s deductible is $8,000.

What is the difference between the Growth and Growth Plus plan?

The differences between the Growth and Growth Plus plan are seen in how much the plan deposits into the savings account, the deductible, and the amount left for the policyholder to pay after meeting the deductible.

The Growth plan deposits $2,000 into your Medicare Savings Account. The deductible is $5,000, so the amount left up to you is $3,000. Here is how that works:

  • You pay $5,000 out-of-pocket for your deductible, and only Medicare-related expenses count toward it
  • Once met, your savings account can be put to use. Once you’ve spent all the money that is in it, you will have to pay for treatments in the way you would with a Medicare plan without a savings component.

The Growth Plus plan works just like the Growth plan, but with larger amounts. The Growth Plus plan deposits $3,000 into your account. The deductible is $8,000, and you are left to pay $5,000 after you have paid your deductible and have used all of the funds from your savings account.

What can I do with the funds in the savings account?

There are rules to consider when using the savings account. The money is specifically put in place for you to use for your medical expenses. The IRS will impose tax penalties on you if you choose to spend your deposited funds on expenses unrelated to healthcare. 

How do I begin?

We at Temmen Insurance are dedicated to providing you with a policy that works to your best advantage. If you’re interested in a Medicare Lasso Plan and want to know if it is right for you, call us today at 417-633-7200.

Recent Posts