Can I use HSA funds to pay Medicare Supplement (Medigap) premiums?

Question

Taylor Langlois · Accepted Answer

Can I use HSA funds to pay for my Medigap premiums? Good question. The quick answer is no. Here's why that trips people up.

Your HSA can be used to cover a bunch of different types of costs, like your Part B premium, Part D premium, your copays, coinsurance, deductibles, all kinds of stuff. But the IRS specifically excluded Medigap premiums from that list. So if you use your HSA dollars to pay for it, it's going to be treated as taxable income. And if you're under 65 paying for that same exact Medigap premium, now you're going to pay an additional 20% penalty.

The bottom line is, if you've got a Medigap policy, budget for that premium separately. Save your HSA for your Part B premium if you're not drawing Social Security, or your Part D premium, or if you're on an Advantage plan, copays, coinsurance, any other health costs on that side.

Kyle McLaughlin · Answer

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.

Answered by Kyle McLaughlin on July 14, 2026

Broker Licensed in PA & MD

Answered by Kyle McLaughlin Medicare Insurance Agent

Lindsey Douglas · Answer

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.

Answered by Lindsey Douglas on July 15, 2026

Broker Licensed in MI

Answered by Lindsey Douglas Medicare Insurance Agent

Kelsey Hentzen · Answer

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.

Answered by Kelsey Hentzen on July 14, 2026

Broker Licensed in KS & MO

Answered by Kelsey Hentzen Medicare Insurance Agent

David Resnik · Answer

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.

Answered by David Resnik on July 14, 2026

Agent Licensed in MA & FL

Answered by David Resnik Medicare Insurance Agent

Nikki Rowland · Answer

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.

Bradley Davis · Answer

The simple answer is NO.  However the funds can be used to pay for your Part B and D Plans and any copays and deductibles that are not covered.

Craig Thibeau · Answer

No you cannot use HSA funds to pay for Medicare Supplement premiums.  You can use the funds for Part A and Part B premiums as well as Part D and Part C premiums.