Q&A - Should I avoid Medicare Part A just to participate in an HSA?
I seem to remember you saying something to that effect, but unfortunately, I am unable to locate my notes from a training course that I took with you a couple of years ago.
I don’t have an article that hits his question head-on.
There is a benefit to have part A, namely that your hospital (or other facilities) out-of-pocket expenses will likely go to ZERO if you have both FEHB and Medicare A. Meaning, not having Part A will expose you to potential out-of-pocket risk.
But, by having Part A you lose out on the tax benefits of the HSA, which could be as high as $3k+ per year. And, on top of that, you’d also lose the potential investment growth in the HSA (HSAs allow you to invest the HSA funds).
I would encourage delaying part A, and riding the benefits of HSA as far as possible – but at the end of the day, the risk trade-off is a decision only your stomach can make.
I hope this helps!