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Question for the Money Doctors

Question submitted on Apr 4, 2011.

Question

If you delay receiving Social Security benefits (until age 70), and DO NOT sign up for Medicare Part A at age 65, can you continue making contributions to your Health Savings Account for the years between 65 and 69 and then start Medicare Part A, Part B etc., without any lost benefits or penalties? I will have Group health insurance through my employer.


Answer

Even if you keep working after you turn 65, you should sign up for Medicare Part A. If you have health coverage through your employer or union, Part A may still help pay some of the costs not covered by your group health plan.  However, once you you sign up for Medicare, you can no longer contribute to your HSA. 

Careful, if you are age 65 or older and working for a small company (less than 20 employees), you should talk to your employee health benefits administrator before making any decision not to take Medicare Part B. If your employer has less than 20 employees, Medicare is the primary payer and your group health insurance would be the secondary payer. 


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