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Re: Health Savings Account

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Thank you very much, Gail_1. Appreciate th einfo you provided. It clarifies the Medicare/HSA rules a lot! Thanks!

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Re: Health Savings Account

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More info

 

AARP updated 10/2016 - Health Savings Account Contributions - Medicare

 

So at 65 and NOT yet on Social Security, you (and your employer) have to decide if you want to stay right where you are with a HDHP and HSA contributions while REFUSING Medicare, even Part A, picking it up later when you stop working.

 

Your employer coverage may also have something to say about it because many times an employer coverage will work with Medicare.

 

If you decide to delay your Medicare enrollment, even Part A, make sure you follow all the rules - verified (employer) credible coverage, Medicare knowing your option and documentation of all of this when you do sign up for Medicare down the road OR ELSE there will be lifetime premium penalty surcharges applied to your Medicare premiums.

 

Remember you can use the monies in your HSA at the time you sign up for Medicare to pay certain medical out of pocket expenses - it is the contributions that are prohibited.  I believe your employer contributions will also stop when you go on Medicare, even just Part A.

 

 

* * * * It's Always Something . . . Roseanne Roseannadanna
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Re: Health Savings Account

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One of many articles -

 

PBS 12/13/2017 - Everything You Want To Know About Medicare's Rules on HSAs

 

Once you sign up for Medicare, even if it is just Part A, which is the premium free part if you have worked and paid into the system long enough, then you will no longer qualify for HSA contributions because you will no longer have a HDHP.

 

 

 

 

* * * * It's Always Something . . . Roseanne Roseannadanna
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Health Savings Account

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I am planning to enroll in Medicare soon. Currently, I am covered by a health plan provided by my  employer and also has a health saving account. I was told by a Medicare staff over the phone that I may want to stop my contributions 6-months prior to my Medicare enrollment, which I did. However, there is no good explanation for this except, that Medicare coverage is 'retroactive'. This is the part that I do not understand. Since I am covered by an employer health plan up to the time that I enroll, why does Medicare need to provide retroactive coverage? - that's question #1.

Question #2 is this: My employer continues to contribute to my health savings accont even as I had stopped mine. Will there be a penalty for this?

This Medicare/Federal rule just doesn't make sense - they want you to save but they will also penalize if you save. Can someone please help make some sense here? 

Thank you.

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