The interaction among employer-sponsored health plans, Medicare and health savings accounts (HSAs) is increasingly complex.
Many Americans become eligible for Medicare at age 65.
The exception to the rule is if someone is 65 and still covered under his or her own employer-sponsored health care or that of a spouse.
Participation in any type of Medicare – parts A, B, C, or D – prohibits any contribution to a health savings plan.
While you can use the HSA to pay for Medicare parts B and D, you cannot use the HSA to fund “Medigap” supplemental insurance premiums.
Further, to be eligible to contribute to an HSA after age 65, you must NOT enroll in Medicare.
This also means that, if you want to continue to fund an HSA at or after age 65, you also cannot start your Social Security benefits. This is because you are automatically enrolled in Medicare when you sign up for Social Security!
As you can see, this is a complex area, which can quickly turn messy.
As usual, there is no “one right answer” for everyone. However, we can figure out the right answer for you or someone you care about who it about to turn 65.
In fact, there are also ways that we can reverse previously made decisions, if they were not the best choices!
I’m eager and prepared to share a conversation with you to assure you make the decision that is right for you.
Barbara A. Culver
CFP®, ChFC®, CLU, AEP®