Retired & Medicare

Over 65:  Retirees and HSA Contributions includes info if you are turning 65

AARP medicare page /   Medicare made clear pdf

Retired teachers:

TRB insurance payments to offset your insurance costs. As you know you have contributed 1.25% of salary to the CT insurance fund. This fund will pay $110 single or $220 couple to the BOE or an insurance company to offset the cost of purchasing insurance if you are under 65 or want to purchase Medicare gap insurance.

– RETIRED TEACHERS Health Insurance Coverage explained
– HEALTH INSURANCE FREQUENTLY ASKED QUESTIONS
– Stirling Benefits: Medicare supplement for retired on Medicare   Presentation
AARP health law guide

RETIRED TEACHERS’ HEALTH INSURANCE 

Costs for retired teachers purchasing PPO plan at full cost from BOE

  • You will be billed monthly
  • TRB subsidy (paid to BOE) is $110 single or $220 dual/month
  • 2013-14 Rates:  check here for current WEA rates
    • Single plan costs $9,491.88 – $1320 = $8172/year or $681/month for 12 months
    • Dual plan costs $20,415.72- $2640 TRB subsidy = $20,415.72 – $2640 = $17776 for medical and dental for the year or $1481 per month for 12 months.

Using an HSA after you turn 65 and are on Medicare:

1. How do I access the funds after I reach age 65?

Once you reach age 65 your funds can be withdrawn at any time and are only subject to ordinary income tax. However, you may avoid any tax by continuing to use the funds for qualified medical expenses. For those over age 65 premiums for Medicare Part A or B, Medicare HMO and employee premiums for employer sponsored health insurance can be paid from an HSA.

2. Can I use my HSA funds to pay for Medicare part A or part B premiums after I reach age 65 or do I need to wait until my spouse is also 65?

Yes, when one of you starts receiving and getting billed for Medicare, you can use the HSA to pay those Medicare costs (or reimburse yourself if Medicare is taken directly out of your Social Security Check). Of course, as soon as you hit age 65 and accept Medicare you are no longer eligible to contribute to the HSA (starting in the month of your 65th birthday). An eligible spouse under age 65 can continue to contribute to their HSA and may use that HSA to pay for other spouse’s Medicare part A or part B premiums.

https://www.hsaresources.com/faq/#access-01

if the account beneficiary has attained age 65, are Medicare Part D premiums qualified medical expenses?

Yes. If an account beneficiary has attained age 65, premiums for Medicare Part D for the account beneficiary, the account beneficiary’s spouse, or the account beneficiary’s dependents are qualified medical expenses. See also Notice 2004-2 [DOC], Q&A-27, andNotice 2004-50, Q&A-4 and Q&A-45, regarding Medicare Parts A and B.

10. I am age 65 and covered under an HDHP, can I still contribute to my HSA?

As long as you have not enrolled in Medicare Part A or B you are an eligible individual and may contribute to your HSA. Once you enroll in Medicare you may no longer contribute to your HSA. For most individuals this means you will no longer be eligible when you turn 65. You lose eligibility as of the first day of the month you turn 65. For example, if you turn 65 on July 21, you are no longer eligible for an HSA as of July 1. Your maximum contribution for that year would be 6/12 (you were eligible the first six months of the year) times the applicable federal limit (remember to include the catch-up amount in the federal limit).