Do you or your spouse have a health savings account or an HSA? They are a great benefit that can be coupled with a high deductible insurance plan that is offered by many companies. You may be wondering how your HSA might interact with Medicare or Medicare benefits. Let’s take a look.

What is an HSA?

An HSA is a savings account that lets people who are enrolled in a high deductible health insurance plan contribute money tax free. The money in the savings account can then be used to pay for medical expenses at the discretion of the owner of the account.

Many HSA plans allow you to invest the money much like you would in a 401(k) or other retirement account. This means that over time a HSA can have quite a bit of money in it to use towards medical expenses.

HSAs and Other Insurance

The downside to an HSA is that the only way you can contribute money into it is if you are enrolled into a high deductible health plan. If at any time you enroll in Medicare, even if you are still employed, you must then stop contributing money into your HSA account. The IRS does not allow contributions to continue once you have enrolled into any form of Medicare (or any other non-high deductible health insurance for that matter).

You can still use what money is in the account to pay for medical expenses.

If you have any legal issues with Medicare or health benefits, contact Stano Law group today!