HSA + Medicare

[somarco]

This is one of the most comprehensive articles I have seen regarding what happens with your HSA contributions when you are enrolled in other plans (such as Tricare) or Medicare

Medicare’s tricky rules on HSAs after age 65

 

[BALDELMO]

Thank you for the excellent source!

 

[asher]

Thank you for a well written article we can share

 

[wehotex]

This is one of the most comprehensive articles I have seen regarding what happens with your HSA contributions when you are enrolled in other plans (such as Tricare) or Medicare

Medicare’s tricky rules on HSAs after age 65

3. Signing up for Medicare Part B when first eligible avoids penalties. Generally speaking, taxpayers are able to defer Medicare past age 65 if they work for an employer with 20 or more employees while also enrolled in a group health plan based on that employment. However, they will need to take action to enroll upon leaving that plan in order to avoid lifetime penalties for late enrollment in Medicare Part B.

Is this part true about the employer group with 20 or more employees? I'm pretty sure that I've had clients who maintained EGHP in work places fewer than 20 employees who didn't suffer penalty.

 

[LostDollar]

3. Signing up for Medicare Part B when first eligible avoids penalties. Generally speaking, taxpayers are able to defer Medicare past age 65 if they work for an employer with 20 or more employees while also enrolled in a group health plan based on that employment. However, they will need to take action to enroll upon leaving that plan in order to avoid lifetime penalties for late enrollment in Medicare Part B.

Is this part true about the employer group with 20 or more employees? I'm pretty sure that I've had clients who maintained EGHP in work places fewer than 20 employees who didn't suffer penalty.

That's a good catch. I'd scanned that article and did not pick up on that. This suggests your comments are correct:
https://www.ssa.gov/pubs/EN-05-10012.pdf

The article author must be confusing enrollment criteria with coordination of benefits rules where Medicare becomes primary payer for small groups, or is viewed as primary payer by the employer plan even if the Medicare eligible employee has not signed up for Part B.

Form L564
https://www.cms.gov/Medicare/CMS-Forms/CMS-Forms/Downloads/CMS-L564E.PDF

does say people with disabilities must have large group health plan coverage.

WHAT IS THE PURPOSE OF THIS FORM?
In order to apply for Medicare in a Special Enrollment
Period, you must have or had group health plan coverage
within the last 8 months through your or your spouse’s
current employment. People with disabilities must have large
group health plan coverage based on your, your spouse’s or
a family member’s current employment.

 

[yorkriver1]

RE: possible glitch with PDP penalty for no creditable RX coverage after T65. Or, if they don't enroll in A or B does that not matter, I think the creditable coverage requirement would be primary in the rules. Anyone have this one figured out?
My client's bookkeeper needed some info on the custodian bank for the under 65 client's HSA. We talked about the bookkeeper's situation, being totally on board with HSA's, and thrilled to be able to contribute after age 65. btw Bob, I found that same article, it's great.
Like Charlie Chan, I see one problem: What about non creditable drug coverage on the HSA compatible employer health plan? The person can't avoid the penalty by buying a PDP, due to not signing up for A or B in order to still contribute to the HSA. My other clients who didn't have an HSA but kept employer coverage, enrolling later in Medicare, still had to prove creditable drug coverage from the employer plan.

 

[LostDollar]

Part D late enrollment penalty | Medicare

(caveat, I am not an agent.)

She's going to have a penalty if she does not have a PDP or other creditable coverage in place by 63 days (2 months) after her IEP ends.

 

[somarco]

What about non creditable drug coverage on the HSA compatible employer health plan?

Consider that the article was penned by an accountant, not an insurance "guru", and give them a pass.

Overall I give it a 95.

It's got a great beat and easy to dance to . . .

Forgive me. My mind went into retro mood for a moment and I flashbacked to Bandstand.

 

[yorkriver1]

All good! If only Saturday mornings were dancing in front of the TV like days gone by.
However, I am not 100% on the Rx plan glitch with HSA's past 65.
Not all HSA compatible plans are creditable coverage, but some are, with lower deductibles. My question is, did the waiver for HSA eligibility past 65 take into account the penalty for no creditable drug coverage and include an exception.
And, in case of confusion over "creditable" vs "credible". "Credit" is given for the time the person had valid coverage. Therefore "able" to be "credited". Nerd rant of the day.

 

[somarco]

Not all HSA compatible plans are creditable coverage,

I doubt any of them are due to HDHP.

OTOH, does CMS really check to see if a plan is creditable or not.

My experience is . . . no, they do not.