HSA and Medicare

Dec 11, 2007 3 Replies
P

I have a family HSA and will start Original Medicare in 2008. Looking at publication 969, the following seems correct... right?



Once I'm on Medicare I can't contribute any more to the HSA.



My wife and I can use what's already in the HSA account for medical expenses like before, until it's used up.



The HSA account can be used for premiums in Medicare part B and part D, but not MediGap.



Since my wife is a few years younger, she can open a self-only HSA account in parallel and contribute to it until Medicare age, as long as she stays on the high deductible health plan.



What's different if I choose Medicare Advantage (part C) instead of Original Medicare?



Thanks.



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A

Now is the time to buy eyeglasses, hearing aids etc

There is a MediCare Advantage plan like an HSA (called an Medical Savings Account). The one in SoCal is Blue Cross Smart Saver at

1-800-765-2585). It is not available everywhere. Think of it as a High Deductible plan which requires use of Network providers

Part C (MediCare advantage) restricts your choice of providers. In my county it comes as an HMO, a PPO, a Private Fee for Service, and an MSA.

Call MediCare (1-800-MediCare) and order a copy of the book "MediCare and You". If it is not intelligible (remember it was written by the same guys who wrote the instructions for 1040) the get the local number for the SHIP counsellor (call 1-800-MediCare) and get a 1/2 hour tutorial on your MediCare options.

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P

Thanks for taking the time to respond.

Back to the original post, now, do I have things right about the HSA-to- Medicare transition?

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D

Correct - no further contributions for you. Correct - you may drain the account for qualifed medical expenses (or reimbursement of prior-year amounts).

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