Can I use HSA funds to pay Medicare Supplement (Medigap) premiums?
Answered by 6 licensed agents
HSA funds cannot be to pay Medicare Supplement (Medigap) premiums. However, if you are age 65 or older, you can use HSA funds tax-free to pay eligible Medicare premiums, including Medicare Part A (if you pay one), Part B, Part D, and Medicare Advantage (Part C) premiums. Medigap premiums are specifically excluded by IRS rules.
NO, you may not use your HSA funds. The IRS does not consider Medigap premiums as a qualified medical expense. However, you may use your HSA funds to pay for out-of-pockets cost such as Medicare Part B, Part C (Prescription Drug), Part C (Medicare Advantage) Premiums. In addition, you can use the funds to pay for your deductibles, co-pays, and co-insurances.
Unfortunately the answer is no, however, you can pay your Medicare part B and Medicare part D premiums from your HSA. If you are 65 or older, you can withdraw HSA funds for any purpose without the penalty, but the amount used for a Medigap premium is taxable as ordinary income because it isn't a qualified medical expense.
If you are age 65 or older, you are permitted to use your HSA to pay for MOST Medicare premiums. And this is not taxable to you. However, you may not use your HSA to pay for Medicare Supplement premiums. After you enroll in one or more parts of Medicare A, B, C, or D, the IRS rules stop you from putting away additional money in your HSA. You can even reimburse yourself for premiums you paid in the past, as long as you can prove you paid them.
No. HSA funds can not be used to pay medigap premiums. However, it can be use to reimburse yourself for your Part B premiums and any co-pays you incur.
