Yes—HSA funds can be used tax-free to pay for most Medicare premiums once you’re enrolled in Medicare.
This includes:
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Medicare Part B (medical insurance)
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Medicare Part D (prescription drug coverage)
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Medicare Advantage (Part C) plans
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Premiums for employer-sponsored retiree health plans (if applicable)
🚫 What You Can’t Use HSA Funds For:
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Medigap (Medicare Supplement) premiums are not a qualified medical expense
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HSA funds used for Medigap premiums will be taxable and potentially subject to a penalty if you’re under age 65
🧠Tip:
You must be age 65 or older to use your HSA for Medicare premiums tax-free. If you’re still working and delay Medicare, the rule doesn’t apply until you enroll.