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1. What is Medicare?

   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)

2. What do the different parts of Medicare cover?

   The parts of Medicare cover different services:

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

3. What is the difference between being Medicare eligible versus being entitled to Medicare?

   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.

4. What does Medicare enrollment mean?

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

5. I will be eligible for Medicare this year, but do not plan to enroll until I retire. I will remain on my employer’s CDHP. Can I keep contributing to my HSA?

   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.

6. I have coverage under the Partnership’s CDHP with an HSA. My spouse is enrolled in Medicare and covered under my CDHP. Can I still contribute to my HSA?

   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.

7. I will be eligible for Medicare this year, and I have decided to apply for Social Security benefits and Medicare? What do I need to do?

   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.

8. Can I receive Social Security benefits but decline Medicare coverage?

   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.)

9. My spouse is Medicare enrolled and not covered by my CDHP. Can I pay for my spouse’s expenses from the money I have accumulated in my HSA?

   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.

10. Can I stop Medicare enrollment and reclaim HSA eligibility?

    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.)

11. How do I cancel my HSA contributions when I enroll in Medicare?

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

12. Can I use HSA funds to pay for Medicare premiums?

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

13. What happens to the money I have saved in my HSA account once I enroll in Medicare?

    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.

14. My spouse is already on Medicare and I have coverage under the Partnership’s CDHP this year. How much will I be able to contribute to my HSA?

    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.

15. I have more questions about Social Security and Medicare. Where can I go for help?

    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 – HSAs & Other Tax-Favored Health Plans
      https://www.irs.gov/pub/irs-pdf/p969.pdf