The topic of discussion in my home today along this line is about what the law already says you can NOT have. Background, previously we had an HSA account and it was very handy to meet co-pays with and out of pocket for what our insurance didnt cover. When open enrollment for our insurance happened in 2013 dh was told he could no longer have an HSA. He took it to mean because we changed from catastrophic insurance to a PPO and told me we would have to close the account.
I had a few doctor bills and some rxs to order and so that was an easy task. I zeroed the account before the date we were told we had to do it by. Then I tried to go online to verify I hadnt gone over or under on the amount and to verify the account was closed. The online info told me no such account existed. Dh tried a few times over the next month and got the same result. So we took it to mean the account had been successfully closed.
Fast forward to this weekend when we got an you owe us money letter from the HSA, it stated we were over drawn and needed to pay them immediately. HUH? It had been nearly a year and now we suddenly owe them money?
Needless to say I called them first thing this morning. They claimed we owed them fees for keeping the account open. I let the gal go on and on and when she finally finished I told her dh had been told at work he could no longer have the account and what wed done and what had happened. Then asked why we hadnt been notified of the problem sooner.
There was silence on her end for a bit and then she said How old is your husband?
Is he on Medicare?
Yes, part A only, they put him on it automatically, he didnt sign up for it. We still have group coverage from his employer
His HR person is right, its against the law for him to have an HSA if hes on Medicare.
So, what do we do now?
I refund the fees, and close the account. You will receive a letter stating this is what is being done and if you had an unused balance prior to the fees you will receive a check within the next two weeks.
The long and the short of it, is they force you to take Medicare as you are turning 65 and it is illegal for you to have an HSA in your name.