HSA and Medicare

Submitted by Melodie Busch on Sun, 2017-02-12 18:32

I am currently working and applied for social security in Jan. The social security office told me I HAVE to enroll in Medicare, Part A, even though I have insurance through my employer. That meant I can no longer participate in my company’s high-deductible plan, which costs less than the one I now have to enroll in, and the company will no longer contribute $5,000 toward my HSA. Is there any way I can decline the Medicare, Part A, since I don’t want it, my new insurance plan costs substantially more, and I have to pay the entire $4,000 deductible myself. Is this age discrimination? If I have to take it, could I sue the federal government for costing me money and discriminating against me.

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Permalink Submitted by William Tuttle on Sun, 2017-02-12 23:44

There is no option to decline Medicare if you enroll in Social Security. This isn’t remotely age discrimination. This is a benefit that you voluntarily enrolled for that has certain additional mandatory benefits You are are entitled to change your mind and reverse the enrollment if you wish.
If you are still working and < 70, why are you enrolling in Social Security? If you have the financial means, you will receive a greater benefit the longer you wait to claim Social Security.
If you are older than 65, there is another problem. When you enroll in Medicare either voluntarily or by enroling in Social Security, you are retroactively enrolled in Medicare by up to 6 months, but not before age 65. This retroactive enrollment in Medicare makes you retroactively ineligible for HSA contributions. This means you may very well have excess contributions for 2016.

Permalink Submitted by David Mertz on Mon, 2017-02-13 05:28

I don’t see why having Medicare would make you ineligible to participate in the HDHP, it just means that you are not eligible to make HSA contributions (or for any to be made on your behalf). Of course, being ineligible to make HSA contributions is a reason that one might want to choose a plan other than an HDHP, but it’s still a choice.