Can I Have a HSA and Medicare?

Many people wonder if they can have a Health Savings Account (HSA) while being on Medicare. The short answer is yes, you can have both simultaneously under certain circumstances.

Typically, HSA accounts are paired with high-deductible health plans (HDHPs) and are designed to help individuals save money for medical expenses. When you enroll in Medicare, you are automatically disqualified from contributing to an HSA if you are on any part of Medicare, but you can still use the funds already in your HSA for qualified medical expenses.

Here are some key points to keep in mind:

• You can continue to use the funds in your HSA to pay for qualified medical expenses even after you enroll in Medicare.
• If you are still working and covered by an HSA-eligible employer-sponsored plan, you can delay enrolling in Medicare Part A and B without penalty.
• Once you stop working and enroll in Medicare, you can no longer contribute to your HSA, but you can still use the existing funds tax-free for medical expenses.

Many people often find themselves asking if they can maintain a Health Savings Account (HSA) while enrolled in Medicare. The answer is yes, but there are some important details to keep in mind.