The American Bankers Association Health Savings Account Council this week voiced its support for legislation that would allow working seniors on Medicare to contribute to HSAs.
Current law prevents working seniors enrolled in Medicare Part A from contributing to an HSA — even when they remain covered by an employer’s HSA-qualified health plan. This forces them to choose between HSA contributions and collecting earned Social Security benefits.
The Hardworking Seniors Act (H.R.10072), introduced by Rep. Michelle Fischbach (R-Minn.), would allow individuals entitled to Medicare Part A by reason of age to remain eligible to contribute to an HSA, beginning in 2027. In a letter to Fischbach, the HSA Council said it supports this commonsense change because it preserves workplace benefits, strengthens health care savings, and gives working seniors greater financial flexibility.
“Preserving HSA contribution eligibility for working seniors saves Medicare money by allowing older employees to remain on their employer’s plan,” the council said. “It also allows them to continue receiving employer HSA contributions like their younger counterparts.
“Your legislation solves a difficult problem for older Americans and we look forward to helping you enact it,” the council added.
