No, FSA rules stipulate that Medicare premiums are not approved expenses. However, some employers offer limited-purpose FSAs that, in rare cases, may include the option to use FSA funds for certain Medicare-related expenses, like Medicare premiums. However, this is not a standard practice, and limited-purpose FSAs vary by employer.
Medicare beneficiaries may be required to pay premiums for certain parts of Medicare, depending on their specific coverage choices and income levels. Additionally, Social Security benefits may be used to cover Medicare premiums in some cases.
Insurance premiums are generally not FSA-eligible expenses. The Internal Revenue Service (IRS) considers healthcare premiums to be personal living expenses rather than qualified medical expenses, making them ineligible for reimbursement through Flexible Spending Accounts.
Healthcare premiums refer to the recurring payments throughout the plan year made by individuals or employers to secure health insurance coverage. These premiums vary by health plan and are based on factors such as plan type, coverage level, deductibles, copayments, and coinsurance.
For most individuals receiving Social Security benefits, Medicare Part B premiums are automatically deducted from their Social Security payments. This automatic deduction makes it more convenient for beneficiaries to pay their Medicare premiums.
Yes, if you have an Health Savings Account (HSA) linked to an High-Deductible Health Plan, you can use HSA funds (not FSA funds) to pay for Medicare Part B, Part C, and Part D premiums.
Insurance premium eligibility is one of the few defining differences between FSAs and HSAs. HSAs (and not FSAs) can be used for both Medicare premiums and insurance premiums.
If you are enrolled in Medicare and still pay for COBRA continuation coverage from your former employer, you may be able to use HSA funds (not FSA funds) to pay for the COBRA premiums.
FSA Products & Services Eligibility List | From IRS Guidelines
