Use of HSA to Pay Healthcare Premiums
Can I use an HSA to receive reimbursement for payment of my employer’s high deductible healthcare plan premiums? I read that one could do that with an HRA under the company’s retirement high deductible healthcare plan premiums.
Permalink Submitted by Alan - IRA critic on Thu, 2017-05-25 17:06
No, healthcare premiums such as this are not qualified expenses for HSA distributions. However, once you go on Medicare the Medicare premiums are qualified expenses (except for Medigap).
Permalink Submitted by William Tuttle on Thu, 2017-05-25 23:38
Normally, health insurance premiums can not be qualified medical expenses. However, there is an exception for health insurance premiums after the age of 65. This includes Medicare premiums and the employee share of premiums for employer-sponsored health insurance, including premiums for employer sponsored retiree health insurance. This exception does not apply to Medicare Supplement Insurance (Medigap) plan premiums.
Permalink Submitted by Jed Stander on Fri, 2017-05-26 18:26
Thank you both very much for your respective replies. I have a follow-up question though. I am not 65. Presumably, based upon your answers, if I modifed my orgional question to ask if I could deduct a COBRA premium, your answer would be the same, correct?
Permalink Submitted by Alan - IRA critic on Fri, 2017-05-26 19:02
Premiums for LTC coverage, COBRA coverage, and other premiums while collecting UC benefits are qualified expenses regardless of age. When using the term “deduct” I assume you meant taking an HSA distribution to pay the premium or reimburse yourself. Any such premiums paid by HSA money is not deductible on Sch A.
Permalink Submitted by Jed Stander on Sat, 2017-05-27 22:01
Thank you for your reply. I’m past that time when I am no longer on unemployment compensation benefits. I am now on Social Security, but am not age 65 nor on Medicare. In this situation, can I take an HSA distribution to pay the premium or reimburse myself for the COBRA premium?
Permalink Submitted by Alan - IRA critic on Sat, 2017-05-27 22:05
Yes, Cobra premiums are eligible regardless of age.
Permalink Submitted by Jed Stander on Mon, 2017-05-29 19:31
Thank you so much!