Can You Use an HSA to Help Pay for Medigap?

The short answer to this question is, “Yes” you can use the money that you save or put back every month to pay for your Medigap policy premiums.  In addition to using your Health Savings Account to pay for your Medigap premiums you can also use it to pay for other qualified medical expenses like copays, coinsurance and the like.  The problem with using a Health Savings Account to pay your Medigap premiums is that you cannot have an HSA while on Medicare.

This little catch-22 comes in to play because of the very nature of the HSA.  You see, a Health Savings Account differs from a Flexible Spending Account because it can accrue over time.  Instead of saving money throughout the year and losing it if you don’t use it during the calendar year, you can save money and roll it over from year-to-year.  This is a very good thing for you if you are eventually going to get Medicare, as most people do.

All the money  you have saved up over the years, if you were able to save with a Health Savings Account can be used for your Medical expenses, up to and including your Medigap premiums.