HSA Facts

What happens to your HSA once you enroll in Medicare? Once you enroll in any part of Medicare, you're no longer eligible to make HSA contributions. This includes Medicare Part A or Medicare Part B - either one will prevent you from contributing further to your HSA.

What to do with your HSA if you get Medicare Part A: If you have to (or choose to) enroll in Medicare Part A, the coverage is retroactive for up to 6 months, but no earlier than your eligibility date. So, you should plan to stop HSA contributions around 6 months before enrolling in Medicare.

The good news: You can keep using your HSA funds. Even after you enroll in Medicare and stop HSA contributions, you are still able to withdraw funds tax­free for qualified medical expenses. You can even use your HSA to pay for some Medicare expenses, including your Medicare Part B, Part D, and Medicare Advantage plan premiums, deductibles, copays, and coinsurance.

Note: HSA funds cannot be used to pay for Medigap premiums.