[x_blockquote cite=”Paola (Juneau, AK)” type=”left”]Dear Marci,
What is a health savings account (HSA)? Can I have an HSA and Medicare?[/x_blockquote]
A health savings account (HSA) is an account that works with a high deductible health plan (HDHP). Many people have an HSA through their current employer. If you have an HSA you can contribute to it on a tax-free basis and use those funds to pay for qualified health expenses as long as you meet certain IRS requirements.
If you have an HSA and you will soon be eligible for Medicare, it is important to plan ahead and understand how enrolling in Medicare will affect your HSA.
If you have an HSA through your current employer and are thinking of delaying Medicare enrollment, you should also consider if your employer plan will pay primary or secondary to Medicare, and therefore whether it is wise to delay Medicare.
Planning ahead can help you avoid penalties and gaps in coverage. You can speak with your employer’s benefits administrator about your situation and options.