Reviewed for accuracy by Lauri Middleton, RN, MSN, licensed Medicare agentReviewed for clarity by Karen OrillaMeet our reviewers →
You keep the money and can still spend it on medical costs — including Medicare premiums. What stops is new contributions: once any part of Medicare is in effect, you generally may not contribute. The trap is that Part A is usually backdated up to six months when you apply after 65, which can turn recent contributions into excess contributions. Many people stop contributing six months before they plan to apply.
Apply this to my situationThe rules behind this
Medicare and HSA contributions do not mix — and Part A can start six months back
Once any part of Medicare starts, you generally may not contribute to a Health Savings Account. If you apply for Medicare after 65, Part A is usually backdated up to six months (but not before the month you turned 65). Many people stop HSA contributions six months before applying so the backdated months do not create excess contributions.
Who this is for
People with an HSA who are still working past 65.
What changes it
- You can still spend existing HSA money; only new contributions stop.
- Taking Social Security benefits enrolls you in Part A automatically.
The question that settles it
“Given when I plan to apply, when should my HSA contributions stop?” — your benefits administrator or tax adviser.
Source: Internal Revenue Service — Publication 969 — Health Savings Accounts ↗
After job coverage ends you have 8 months for Part B
If you delayed Part B because you or your spouse had coverage from current work, you get a Special Enrollment Period: 8 months starting the month after the job or the coverage ends, whichever comes first. Signing up in that time avoids the Part B penalty.
Who this is for
People 65+ who kept coverage from their own or a spouse’s current employer.
What changes it
- COBRA and retiree coverage do not start or extend this period.
The question that settles it
“My job coverage ends on [date]. When does my 8-month Part B Special Enrollment Period end?” — Social Security.
Source: Social Security Administration — Sign up for Part B only ↗
Get help
Free Medicare counseling
California HICAP offers free, confidential Medicare counseling. Ask the local program about language and appointment availability.
California HICAP1-800-MEDICARE
Call 1-800-MEDICARE and ask for an interpreter. TTY: 1-877-486-2048.
Call Medicare · 1-800-633-4227Official information in other languages ↗External resource. Some pages are in English; ask for language assistance if needed.