Monday, April 11, 2016

Can I have a Health Savings Account if I'm on Medicare?

An HSA (Health Savings Account) is a practical way to save for medical expenses and reduce your taxable income. It’s like an IRA for your health care costs. To be eligible for an HSA, you must have a qualifying HDHP (High Deductible Health Plan).
The 2016 annual HSA contribution limit for individuals with HDHP coverage is $3,350 (no change from 2015), and the limit for individuals with family HDHP coverage is $6,750 (a $100 increase from 2015). If you are 55 or older, you can make “catch-up” contributions, meaning you can deposit an additional $1,000 per year. If your spouse is also 55 or older, he or she may establish a separate HSA and make a “catch-up” contribution to that account. You have until the tax-filing deadline (generally April 15) of the following year to make allowable contributions.
Once you are on Medicare, you no longer can contribute to an HSA, however you can use funds already in your account to cover some Medicare costs, including deductibles, copays, vision and dental care. Those on Medicare can also use HSA funds to reimburse themselves for money that’s deducted from Social Security to pay Medicare Part B premiums. Although HSA funds cannot be used for Medicare Supplement insurance plan premiums, they can be used to pay Medicare Part D premiums, Medicare Advantage plan premiums and a portion of long-term-care insurance premiums.
Unlike other Flexible Spending Accounts, money you do not spend each year stays in your account providing you with a tax-advantage. Your money goes in tax-free, grows tax-free and comes out tax-free when you use it for qualified medical expenses.
Once an HSA reaches a certain threshold, the funds can be invested in mutual funds. The earnings from these funds are tax free as long as they are eventually used for qualified medical expenses.
If you have a High Deductible Health Plan (HDHP) and are interested in setting up an HSA, talk to your employer or contact a local bank for details.

For answers to your other questions on Life, Health, Dental, Vision, Annuities or Medicare Advantage Plans, please contact me at 440-255-5700 or email me at I look forward to serving you.
How do I pay for my Medicare premiums?

If you are like most Medicare beneficiaries, you do not pay a premium for Medicare Part A.  Medicare Part B premiums are deducted from your benefit payments if you are on Social Security or Railroad Retirement Board benefits. If you are not receiving
Social Security or Railroad Retirement Board benefits, you will be billed monthly and will be responsible for paying your premiums using one of the following options.

1. Pay by check or money order by mailing your Medicare premium payments to:
Medicare Premium Collection Center
P.O. Box 790355
St. Louis, MO 63179-0355
2. Pay by credit or debit card by completing the bottom portion of the payment coupon on your Medicare bill and mailing it to the Medicare Premium Collection Center address listed above. You’ll need to provide the account information and expiration date as it appears on your card.
3. Set up online banking. Contact your bank or go to their website to set up online bill payment services. You will need to provide your bank with your Medicare account number, your monthly premium, the biller name which will be CMS Medicare Insurance, and a remittance address which will be the same address listed above for payment by check or credit card.
4. Sign up for Medicare Easy-Pay, a free service that automatically deducts your premium payments from your savings or checking account each month. You will need to complete an authorization form available online at Mail the completed Authorization form to:

Medicare Premium Collection Center
PO Box 979098
St. Louis, MO 63197-9000

5. If you are billed by the Railroad Retirement Board, mail your premium payments to:
RRB, Medicare Premium Payments
P.O. Box 979024
St. Louis, MO 63197-9000
If you are a Civil Service retiree and NOT entitled to Social Security, you may have your premiums deducted from your Civil Service annuity. To do this, send an email to
Please keep in mind that you risk losing your Medicare benefits if you fail to pay. If your premium is late you will get a Second Notice. If you don’t pay the premium by the due date for the Second Notice, you'll get a Delinquent Notice. If you get a Delinquent Notice and you don’t pay your premium by the 25th of the month, you’ll lose your Medicare coverage.
If you have questions concerning premium payments call Social Security at 1-800-772-1213. For all your insurance questions including Life, Health, Vision, Hearing or Medicare Advantage Plans, contact me at 440-255-5700