High Deductible Health Insurance vs Medicare Part A

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scotgirl100
Posts: 7
Joined: Sun Jun 05, 2016 1:45 pm

High Deductible Health Insurance vs Medicare Part A

Post by scotgirl100 » Tue Oct 10, 2017 3:56 pm

For 2018 my employer will be providing a High Deductible Insurance Health Insurance Option for the first time. They are also offering a standard insurance plan. The employer's contribution to the Health Savings Account plus the mark difference in premium makes the High Deductible Plan worthy of considering.

However when I turned 65 I signed up for Medicare Part A only. And you can't have a HSA if on any part of Medicare.
For as long as I continue to work, can I suspend Medicare Part A so I can take advantage of the HSA?
Or am I stuck with the standard insurance plan?

Would appreciate any insight. Thank you.

kd2008
Posts: 512
Joined: Sun Feb 15, 2009 6:19 pm

Re: High Deductible Health Insurance vs Medicare Part A

Post by kd2008 » Wed Oct 11, 2017 10:04 am

It depends on the type of your employer, do you receive social security benefits etc

https://www.medicareinteractive.org/get ... d-medicare
Whether you should delay enrollment in Medicare so you can continue contributing to your HSA depends on your circumstances. If you work for an employer with fewer than 20 employees, you may need Medicare in order to have primary insurance, even though you will lose the tax advantages of your HSA. This is because health care coverage from employers with fewer than 20 employees pays secondary to Medicare. If you work at this kind of employer and fail to enroll in Medicare, you may have little or no health coverage because your health plan does not have to pay until after Medicare pays. Health care coverage from an employer with 20 or more employees pays primary to Medicare, so you may choose to delay Medicare enrollment if you work at this kind of employer and continue putting funds into your HSA.

Note: In either case, you have access to the Part B Special Enrollment Period (SEP) when you lose coverage or retire.

If you choose to delay Medicare enrollment because you are still working and want to continue contributing to your HSA, you must also wait to collect Social Security retirement benefits. This is because most individuals who are collecting Social Security benefits when they become eligible for Medicare are automatically enrolled into Medicare Part A. You cannot decline Part A while collecting Social Security benefits.
Hope this helps!

scotgirl100
Posts: 7
Joined: Sun Jun 05, 2016 1:45 pm

Re: High Deductible Health Insurance vs Medicare Part A

Post by scotgirl100 » Wed Oct 11, 2017 11:38 am

I work for a 1,000 + employer so Medicare is not primary. Link is helpful but it doesn't address whether I can suspend Medicare Part A now that I have an opportunity to do a HSA. Is there anywhere I can check that aspect out?

Spirit Rider
Posts: 6225
Joined: Fri Mar 02, 2007 2:39 pm

Re: High Deductible Health Insurance vs Medicare Part A

Post by Spirit Rider » Wed Oct 11, 2017 12:01 pm

Yes, you can stop Medicare Part A. I don't know if it is a suspension or a cancellation.

You should pm forum member "small law survivor". Who went through this exact scenario starting about a year ago. Fair warning it is a rare event and it looks like even SS doesn't know exactly how to process the request. It took small law survivor almost eight months to do so. However, maybe given his experience, you can get pointers on navigating the minefields much quicker.

kd2008
Posts: 512
Joined: Sun Feb 15, 2009 6:19 pm

Re: High Deductible Health Insurance vs Medicare Part A

Post by kd2008 » Wed Oct 11, 2017 1:31 pm

This is what I found online

http://www.bernardhealth.com/woofstreet ... are-Part-A
For those turning 65 and enrolling in Medicare for the first time, there are times when enrolling in Medicare Part A may not the best strategy. For individuals who continue to work after turning 65, enrolling in Part A disqualifies them from accepting employer contributions to Health Savings Accounts. Employers and employees may contribute a total of $6,150 to Health Savings Accounts for families in 2011 - enrolling in Medicare Part A upon turning 65 would mean forgoing all of that free and/or tax advantaged money. By disenrolling in Medicare Part A, however, you're required to give up your Social Security benefits, including your monthly Social Security check. If your employer contribution to your company HSA isn't more than you would earn from Social Security, it's best to stick with Medicare Part A.

If you want to disenroll from Medicare Part A, you can fill out CMS form 1763 (Request for Termination of Premium Hospital and Medical Insurance) and mail to your local Social Security Administration office. To disenroll after turning 65, you are required to pay back all of the money received from Social Security as well as any Medicare benefits paid. You can re-enroll at any time by calling Social Security at 1-800-772-1213 or visiting your local SSA office.
Returning Social Security benefits part may not apply to you.

Form 1763 is found here: https://secure.ssa.gov/apps10/poms/imag ... S-1763.pdf

Spirit Rider
Posts: 6225
Joined: Fri Mar 02, 2007 2:39 pm

Re: High Deductible Health Insurance vs Medicare Part A

Post by Spirit Rider » Wed Oct 11, 2017 2:52 pm

People are generally encouraged to sign up for Medicare Part A at 65 even when the are still working with an employer plan. However, if the company has >= 20 employees it is secondary and most people with decent employer plans will see little to no Medicare benefits actually paid. If the OP is the exception, it may factor into the situation.

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