Retirees Can Pay Medicare Premiums From an HSA, Tax-Free. The Average One Pays From Checking.

Funding and investing in a Health Savings Account (HSA) before Medicare eligibility creates a highly tax-efficient way to pay future Medicare premiums. Medicare Part B, D, and Advantage premiums qualify as HSA expenses, allowing tax-free withdrawals, unlike taxable IRA withdrawals. Despite rising premiums and healthcare costs, many retirees lack sufficient HSA funds, relying on taxable accounts instead. HSAs offer triple tax advantages and can significantly reduce retirement healthcare expenses.