Employer Hsa Plans Vs Mapds and Supps

[keith365]

Hey Guys,
Does anyone have experience with prospects who have an employer hsa? Is it generally better for them to keep it while they are working? Or, to put them into an mapd or supplement? Thanks!

 

[TN_agent]

To my knowledge, an individual can't contribute to an HSA if they are enrolled in Medicare. So, they would need to postpone enrollment in Medicare in order to contribute to HSA. Not sure if employer can still contribute on their behalf though.

 

[somarco]

Might want to make sure it is an HSA and not an HRA. More often when an employer provides the fund(ing) it is an HRA, not HSA

 

[kgmom219]

To my knowledge, an individual can't contribute to an HSA if they are enrolled in Medicare. So, they would need to postpone enrollment in Medicare in order to contribute to HSA. Not sure if employer can still contribute on their behalf though.

Its actually a grey area.

Some IRS docs say Medicare. (Does not specify A and/or B)

Some say age 65.

Courts ruled 65, but it's being appealed.

Most HSA administrators have stop allowing contributions at age 65.

(Guess who had to dig up a 3 year old email that she wrote that said age 65 was the stop date, not Medicare, when the client took a hit becuase they had Part A?)

 

[keith365]

ok, so they can't contribute to an hsa at age 65. is it worth keeping then? can they keep an employers hsa after retiring?

 

[somarco]

HSA funds always belong to the employee, regardless of who funds it. Immediate vesting.

HRA is employer money only. Rarely (if ever) portable.

Based on what you have posted so far, I am not convinced you understand the differences, and may not be sure which one is in place.

Consumers rarely understand what they have. They confuse FSA with HRA with HSA. Unless you have seen the plan summary, read it and understood what you read, you really don't know what they have.

They also confuse supplement with Advantage. Drug discount plans with PDP. And so forth . . .

https://www.zanebenefits.com/blog/b...avings-accounts-vs-reimbursement-arrangements

HRA or HSA ? which is better for you?

 

[kgmom219]

ok, so they can't contribute to an hsa at age 65. is it worth keeping then? can they keep an employers hsa after retiring?

I agree with Somarco, confirm that its an HSA. Not a phone call or an email from the client. Have them send you something from the company.

You NEVER give up your HSA. I don't care who funded it. (And yes, some employers do fund an HSA)

If they are on an HSA, then the answer is they keep the money. If they are on a HDHP, they can still use the money to pay expenses. The spouse can use it. It can sit there til they go on Medicare and use it to pay Part B. Whatever.

But you need to figure out what they have.

 

[keith365]

Ok great, thank you. so if they pay a high premium and high deductible, I may rightly suggest a mapd or sup, and they can keep the funds in the hsa (if that's what they have), even if they are still working, as long as they are 65 or older. what if there's a younger spouse on the plan? they would lose coverage of the older spouse changed insurance, even tho they keep the hsa funds?

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why would anyone continue to pay for an hsa through an employer, with a premium and a high deductible, when they could sign up for medicare and add an advantage plan or sup? They can't contribute to the hsa anymore anyway, and I understand that they get to keep the funds already in there if they go off their employer plan.

 

[TN_agent]

Well, depending on premium, it can make sense if they are high income (IRMA high) or on really expensive drugs. Employer HDHP would have drugs costs included in MOOP with no donut hole.