Frequently Asked Questions

Medicare is health insurance for:

• People 65 or older
• People under 65 with certain disabilities
• People of any age with End-Stage Renal Disease (ESRD) (permanent kidney failure requiring dialysis or a kidney transplant)

The parts of Medicare cover different services:

• Part A ‚Äì Hospital insurance
• Part B ‚Äì Medical insurance
• Part C ‚Äì Medical Medicare Advantage Plans (like an HMO or PPO) ‚Äì plans run by Medicare-approved private insurance companies. These plans include Part A, Part B, and usually other coverage Part D
• Part D ‚Äì Prescription Drug Coverage

Medicare eligibility means you have met the requirements to qualify for Medicare Part A hospital insurance and are eligible to receive Social Security payments.

Medicare entitlement means that you are eligible, you have filed an application to receive Medicare Part A, or have been approved automatically, and your name is already in the system - or your application has been processed and you have been sent a Medicare card showing the date your coverage starts.

Medicare enrollment means you are automatically enrolled in Medicare Part A and receiving Social Security payments.

Yes. A person can continue receiving employee and employer contributions into their HSA as long as they are not enrolled in any part of Medicare, including Parts A, B, C, or D. Medicare enrollment can be delayed by contacting the Social Security Administration at 1-800-772-1213.

Note: If you apply for Social Security benefits at age 65 or older, you are automatically enrolled in Medicare Part A unless you contact the Social Security Administration and let them know you want to delay your Medicare enrollment.

Yes. Your eligibility to contribute to your HSA is determined by the status of the HSA account owner, not the status of your spouse or tax dependents. Your spouse can be on Medicare without disqualifying you from contributing to your HSA. If you have spouse or family coverage under the CDHP, you can still contribute up to the family maximum contribution. Please see the Benefits Guide for this year’s contribution limits. If you are age 55 or older, you may also contribute up to an additional $1,000 as a catch-up contribution.

If you apply for and collect Social Security benefits, you will automatically be enrolled in Medicare Part A. Beginning the first month you enroll in Medicare, your HSA contribution limit is zero. If you turn 65 and become eligible in the middle of the year, your HSA contribution limit is prorated for the calendar year. Example: You turn 65 in July 2025 and are enrolled in the CDHP with Employee Only coverage.

2025 IRS Contribution Limit Prorated Contribution Limit $4,300 $4,300 ÷ 12 x 6 = $2,150 $1,000 (catch-up) $1,000 ÷ 12 x 6 = $500 Your total 2025 contribution limit: $2,650

You need to contact the Benefits Department at benefits.mailbox@energytransfer.com to stop your HSA contributions.

Note: This rule applies to periods of retroactive Medicare coverage, so if you delayed enrolling in or applying to Medicare and later your enrollment is backdated, any contributions made during the period of retroactive coverage are considered excess. In this situation, you need to be sure to stop all HSA contributions up to 6 months before you collect Social Security.

No. If you are receiving Social Security benefits, you cannot decline Medicare Part A. Enrolling in Social Security benefits automatically enrolls you in Medicare Part A coverage, thus you are no longer eligible to open or make contributions to an HSA.

If you are entitled to Medicare because you signed up for Part A at age 65 or later, but have not yet applied for Social Security retirement benefits, you can withdraw your application for Part A. (To do so, contact Social Security Administration at 1-800-772-1213) There are no penalties or repercussions, and you are free to reapply for Part A at a future date. (If any claims have been paid by Medicare Part A on your behalf, you would be required to pay those back.)

Yes. You can pay for eligible expenses from your HSA for yourself or your tax dependents, even if the dependent is not covered under your medical plan and even if he or she has other coverage. Eligible expenses include copays, deductibles, and other eligible expenses for which you will not receive reimbursement.

Yes. If you are entitled to Medicare because you signed up for Part A at age 65 or later, but have not yet applied for Social Security retirement benefits, you can withdraw your application for Part A. (To do so, contact Social Security Administration at 1-800-772-1213) There are no penalties or repercussions, and you are free to reapply for Part A at a future date. (If any claims have been paid by Medicare Part A on your behalf, you would be required to pay those back.)

To request a change to your HSA contributions, contact the Benefits Department at benefits.mailbox@energytransfer.com.

You can use your HSA funds to pay for Medicare Part A, B, C (Medicare Advantage plans), and D premiums.

Although you can no longer make contributions to your HSA once you enroll in Medicare, the money that has accumulated in your account remains yours to spend on eligible expenses, including Medicare co-pays, deductibles, vision, and dental expenses.

If your spouse is enrolled in Medicare, and you are covering both your spouse and you on your CDHP, you can contribute up to the IRS family maximum to an HSA in your name. If you are 55 or older, you will still be able to make the $1,000 catch-up contribution.

There are several agencies that can answer your questions. Here are just a few resources that can help with your additional questions:

• Center for Medicare Services (CMS)
  www.cms.gov
• Medicare
  1-800-633-4227
  www.medicare.gov
• Social Security Administration
  1-800-772-1213
  www.ssa.gov
• AARP FAQ
  http://www.aarp.org/health/medicare-insurance/info-04-2009/ask_ms_medicare_question_53.html
• IRS Pub 969 ‚Äì HSAs & Other Tax-Favored Health Plans
  https://www.irs.gov/pub/irs-pdf/p969.pdf