Do I Need to Cancel My Medicare Before Opening an HSA?

If you are wondering whether you need to cancel your Medicare before opening an HSA, the answer is yes. In order to contribute to a Health Savings Account (HSA), you must be enrolled in a high-deductible health plan (HDHP) and cannot be enrolled in Medicare.

Medicare is not considered an HDHP, and if you are enrolled in both a high-deductible health plan and Medicare, you will not be eligible to contribute to an HSA. Therefore, it is important to cancel your Medicare before opening an HSA to avoid any penalties or ineligible contributions.

If you're considering whether to cancel your Medicare before you open a Health Savings Account (HSA), it's essential to understand how these two accounts interact. While HSAs can offer fantastic tax benefits, you need to be mindful of your Medicare enrollment status.