Had a potential client call me with questions about staying on his HSA group coverage past age 65. We know if he signs up for Part A, he can no longer contribute to the HSA account, but what caught me off guard was that his employer told him his current HSA plan (which offers full Rx coverage) was not considered creditable, and he should get a part D plan or be faced with future penalties.
My reading on the gov't definition of creditable coverage on an "integrated' plan...which is basically what most HSA plans are (all expenses goes to one single deductible of $3000/6000) would never be creditable since it has a deductible of greater than $405.
Now I am sure that i have put lots of folk on Medicare Part A/B and D long after retiring past age 65, and I have never had one person tell me their plan was not creditable. To me, his group plan offers better coverage than a part D plan....no donut hole, no OOP past his medical deductible, etc. In fact, since he already hit his max OOP for this year, all his meds are free for the rest of the year....so why switch to a plan that starts over with co-pays, etc?
Anyone else been through this, or have I just learned something new, or is the employer confused?
My reading on the gov't definition of creditable coverage on an "integrated' plan...which is basically what most HSA plans are (all expenses goes to one single deductible of $3000/6000) would never be creditable since it has a deductible of greater than $405.
Now I am sure that i have put lots of folk on Medicare Part A/B and D long after retiring past age 65, and I have never had one person tell me their plan was not creditable. To me, his group plan offers better coverage than a part D plan....no donut hole, no OOP past his medical deductible, etc. In fact, since he already hit his max OOP for this year, all his meds are free for the rest of the year....so why switch to a plan that starts over with co-pays, etc?
Anyone else been through this, or have I just learned something new, or is the employer confused?
