# Stop Penalizing Working Seniors Act

Right now, there's a rule that prevents people over 65 from putting money into health savings accounts (HSAs) once they're eligible for Medicare. This bill removes that restriction, but only for seniors who have enrolled in Medicare Part A and nothing else.

Here's what this means in practical terms: Medicare Part A covers hospital stays and related care, while Medicare Part D covers prescription drugs and Medicare Part B covers doctor visits and outpatient services. Many seniors enroll in all three parts together. Under current law, the moment you become eligible for any part of Medicare, you lose the ability to contribute to an HSA—even if you're still working and want to save money for medical expenses. This bill says that if you're only enrolled in Part A specifically, you should be allowed to keep contributing to your HSA. The change would apply to tax years starting after December 31, 2020.

The practical impact is fairly narrow. This mainly helps working seniors who have deliberately chosen to enroll only in Part A while continuing to work and maintain other health coverage through their employer. For most people, this won't change anything because they either aren't working past 65, or they've enrolled in multiple parts of Medicare. But for the specific group of working seniors who want to keep building up tax-advantaged savings for healthcare costs while only using Part A coverage, this removes a financial penalty that currently forces them to stop saving in this way.

Stop Penalizing Working Seniors Act

Latta, Robert E.

Stop Penalizing Working Seniors Act This bill allows Medicare-eligible individuals who are age 65 or older to contribute to health savings accounts if their entitlement to Medicare benefits is limited to hospital insurance benefits under Medicare Part A.