How can I spend my HSA funds once I have Medicare?

Table of Contents

If you have Medicare, you can still use your existing Health Savings Account funds to pay for qualified medical expenses.

1. Pay for Medicare expenses #

Premiums: You can use your HSA to pay for certain Medicare premiums, including Part A , Part B , Part C , and Part D.
Deductibles, Copays, and Coinsurance: Your HSA funds can cover your deductibles, copayments, and coinsurance for various Medicare services.

Note: You cannot use your HSA to pay for Medicare Supplement premiums.

Your HSA can also be used for a variety of other qualified medical expenses that Medicare might not fully cover, including:

Dental care: Costs associated with dental visits, procedures, and orthodontics.
Vision care: Eye exams, glasses, contact lenses, and vision correction surgeries.
Hearing aids: The cost of hearing aids and related services.
Long-term care: In some cases, you can use your HSA to pay for a “tax-qualified” long-term care insurance policy. The amount you can use depends on your age.

No new contributions: Once you enroll in any part of Medicare, you can no longer make new contributions to your HSA.
Avoid penalties: To avoid potential tax penalties, it’s recommended to stop contributing to your HSA at least 6 months before you enroll in Medicare, as Part A coverage can be retroactive.
Record keeping: Keep accurate records and receipts for all your medical expenses paid with your HSA funds.