If you are considering getting a high-deductible health plan (HDHP), you may wonder if you can use it to pay for Medicare premiums. The answer is a little complicated, but you cannot pay it directly from your paycheck. That money goes to Medicare to cover the cost of Medicare parts A and B. You may also have Part D, which is their drug plan.
Enrolling in Medicare
Once you enroll in Medicare, you cannot contribute anymore to your health savings account (HSA). It does not matter if you continue to work and are only enrolled in Part A. United Healthcare says that when you enroll in Medicare, they will make your coverage retroactive for as much as six months earlier, and you should stop your contributions six months before your Medicare coverage starts.Even though you cannot contribute more to your HSA health insurance, the money in the account will continue growing, and you can still use the money. After you turn 65, you can use the money in your HSA to pay for medical expenses. Withdrawals are tax-free for qualified medical needs. The tax-free withdrawals enable you to continue saving money on all medical expenses.
Money Can Be Used for Anything After 65
Money still in your HSA account can be used for any purpose without a penalty after you turn 65. Withdrawals count as regular income, so it is necessary to pay taxes on it, but there will not be any penalties.HSA-Covered Medical Services
Besides your basic medical services such as doctor visits, copays, testing, and more, you can even get services that Medicare does not cover. Among other things, it covers:- prescriptions
- vaccinations
- lab fees
- hospital visits
- dental and vision care
- wellness care
- treatment for drug or alcohol abuse
- family planning
- over-the-counter medications (not supplements)
- allergy medications
- health insurance premiums
- menstrual products
- and much more
