No penalty. After you turn 65, you can use money from your Health Savings Account (HSA) to pay Medicare premiums for both of you. Even though your premiums are deducted from your Social Security benefits, you can withdraw money from the HSA tax-free to reimburse yourselves for the Part B premiums. You can also use the HSA money to pay Part D premiums for both of you.
You should confirm this with your HSA Plan Administrator before proceeding.
"I am not age 65" does not say whether you are under or over age 65. Medicare premiums and payments for other health care coverage are *not* qualified medical expenses if the HSA owner is under age 65 at the time of the distribution from the HSA. If you were under age 65, payment's for your husbands Medicare coverage would be taxable and subject to a 20% penalty.
I am 62 (not retired). Am I correct that I can use my HSA to pay for my husband's prescriptions, doctor and hospital bills?
Yes, your husband's prescriptions, doctor and hospital bills that are not paid by Medicare or other insurances are qualified medical expenses to which distributions from your HSA can be applied.