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Can someone on traditional Medicare be covered by spouse's FSA?

Forum|Forum|4 years ago
November 9, 2021
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Hello --

If a retired person is covered by traditional Medicare can they also be covered by a spouse's FSA account (through spouse's employer) for expenses that Medicare does not cover? An example being dental costs, since traditional Medicare does not cover cleanings, fillings, etc. I know there are restrictions with Medicare and HSA plans, but it appears that FSAs are treated differently. Thanks.

Best answer by Opus 17

Once money is placed in an FSA or HSA, it may be used to pay for out of pocket medical expenses for the account owner, their spouse or their dependents.

The only expenses that can't be paid from an HSA are medical insurance premiums, except that premiums for long term care and Medicare (but not "Medigap" insurance premiums) can be paid from an HSA if the person is 65 or older.
The only expenses that can't be paid from an FSA are medical insurance premiums (including long term care).
Neither type of plan can be used to pay for expenses that were also covered by some other type of insurance.

The restrictions really fall on contributions— you can't contribute to an HSA if you are covered by Medicare or by your own or a spouse's FSA. But once money is in the account, the rules on spending it are not that much different.

Critter-3

You are not "covered" by the spouse's FSA account since it is not insurance which is where the limitation happens with an HSA. So your spouse can use money in their FSA to pay for any out of pocket medical costs they incur for themselves, their spouse and dependents.

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pigwidginAuthor

@Critter-3 Thank you!

O

Opus 17Answer

Employee

Once money is placed in an FSA or HSA, it may be used to pay for out of pocket medical expenses for the account owner, their spouse or their dependents.

The only expenses that can't be paid from an HSA are medical insurance premiums, except that premiums for long term care and Medicare (but not "Medigap" insurance premiums) can be paid from an HSA if the person is 65 or older.
The only expenses that can't be paid from an FSA are medical insurance premiums (including long term care).
Neither type of plan can be used to pay for expenses that were also covered by some other type of insurance.

The restrictions really fall on contributions— you can't contribute to an HSA if you are covered by Medicare or by your own or a spouse's FSA. But once money is in the account, the rules on spending it are not that much different.

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pigwidginAuthor

Thank you both for the replies. In this case there is no HSA plan involved. The employee’s medical is a PPO without HSA. He only has an FSA. So it sounds like the spouse’s medical expenses that are not covered by Medicare or Medigap could be paid by funds from the FSA?