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Returning Member

cobra and HSA

If I voluntarily retire at the age 62, and take cobra coverage, can I use the money saved in my HSA account and pay for the cobra premiums? How about medicare periums later?

3 Replies
Employee Tax Expert

cobra and HSA

Yes, you can use an HSA to pay COBRA premiums and Medicare premiums. 


Solved: Can i pay for my cobra insurance with an hsa (


HSA and COBRA - Portability, Premiums and Contributions (



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Employee Tax Expert

cobra and HSA

Hello subra1

Congratulations on retirement!  Great news that you have funds in your HSA and you can use the funds for qualified medical expenses for your COBRA payments and Medicare coverage. states 


You can’t treat insurance premiums as qualified medical expenses unless the premiums are for any of the following.

  1. Long-term care insurance.

  2. Health care continuation coverage (such as coverage under COBRA).

  3. Health care coverage while receiving unemployment compensation under federal or state law.

  4. Medicare and other health care coverage if you were 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap).

I hope this information is helpful!


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Opus 17
Level 15

cobra and HSA

Just to verify,

You may not contribute new money once you are on medicare, and you would only be able to contribute on COBRA if you are in an HSA-eligible plan.  But once you have money in an HSA, you may spend it even when you are not covered by a plan allowing contributions, and the premiums you mention are qualified expenses. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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