3 facts for those enrolling in Medicare who have a Health Savings Account (HSA)
Are you also participating in a consumer choice health plan and contributing to a health savings account (HSA)?
If you answered yes to both questions, here are some facts to consider:
- Once you are enrolled in Medicare, you must stop contributions. Those enrolled in Medicare are no longer eligible to contribute to an HSA.
- You can withdraw funds from the HSA for eligible medical expenses including premiums for Medicare Parts B, medical insurance, and Part D, prescription drug coverage, and a Medicare Advantage plan, along with deductible, copayments, and coinsurance for medical care and medications.
- You cannot use funds from an HSA to pay premiums for Medicare supplement insurance, also known as a Medigap policy.
A special concern for those who delay Medicare enrollment: If you enroll after the age of 65, Social Security can backdate date Medicare takes effect. Consider stopping contributions six months before you want Medicare to start.
Last updated: June 15, 2016, 4:30:29 PM