Can You Contribute to an HSA if You are on Medicare?

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HSA contribution limits after Medicare enrollment

If you are on Medicare, you are not eligible to contribute to a Health Savings Account (HSA). Medicare recipients, by law, cannot contribute to an HSA. However, if you were on an HSA-qualified high deductible health plan before enrolling in Medicare, you can still use the funds that are already in your HSA account for qualified medical expenses.

Medicare enrollees might wonder about contributing to an HSA because HSAs offer significant tax benefits and can help save for medical expenses in retirement. In most cases, you must be enrolled in a high deductible health plan to contribute to an HSA. Since Medicare is not a high deductible health plan, those on Medicare are unable to make contributions.

Many people wonder if they can still contribute to a Health Savings Account (HSA) while enrolled in Medicare. The answer is nuanced; once you enroll in any part of Medicare, including Part A, B, C, or D, you lose your eligibility to make further contributions to your HSA.

Options for covering healthcare costs in Medicare

Although you can't contribute to an HSA while on Medicare, there are options available to help cover healthcare expenses as a Medicare recipient. These may include:

• Medicare Advantage plans with Health Savings Account options
• Medicare Medical Savings Account plans
• Medicare Part A, B, and D coverage