Insurance Bites – Information that you can easily digest
Did you know that you can use the funds from your HSA to pay your Medicare premiums tax free?!?!?
You can use your HSA tax free for the following:
- Medicare Part B premiums ($148.50 for 2021)
- Medicare Part C premiums (Medicare Advantage)
- Medicare Part D premiums (Your Prescription Drug Plan Monthly Premium)
- Deductibles for all parts of Medicare (Part B deductible $203- For those on Plan G or N )
- Co-payments and co-insurance costs for all parts of Medicare
Your costs for Medicare Part C (Medicare Advantage) and Medicare Part D (prescription drug coverage) will depend on the plan you have. Each plan will have its own costs for premiums, deductibles, and copayments. You can use HSA funds toward any of these costs tax free!!
Can I use my HSA to pay Medicare Supplement premiums?
Medicare Supplement insurance, isn’t considered a qualified medical expense. This means you can’t use the money in your HSA toward the cost of these plans without paying taxes. You can use the money toward Medigap premiums, but you’ll need to pay taxes on the money you withdraw to do so.
