Ensure You Have Healthcare Coverage

 

Healthcare in retirement is different based on whether you are under or over age 65, which is when you become Medicare eligible. Even if you’re on Medicare, healthcare isn’t free, so it's best to prepare now. 
The average person with Medicare will spend $6,3001 each year on healthcare in retirement, so you need to factor that into your expenses.

Healthcare Tips

Hear from Delta retirees on how they’re handling healthcare now and their plan for the rest of their retirement.

 

Learn how much healthcare could cost you in retirement

What's your next step?

Click on a button below to learn more about your options.

Healthcare Coverage Options Before Age 65 

Medicare Coverage After age 65 

Delta’s Health Savings Account (HSA)

Delta has several benefits that help you cover the cost of healthcare in retirement. One of those benefits is an HSA. If you enroll in Delta's Gold or Silver HSA medical options, you are eligible for an HSA. HSAs allow you to choose to use the money to cover medical bills now or invest your money to potentially grow and help pay for medical expenses in retirement.

Key Takeways:

  • Money leftover in your HSA is yours to keep from year to year, job to job, and into retirement.

  • You can’t contribute to an HSA once you start Medicare.

  • Use HSA money to pay for current healthcare costs or to save and invest federally tax-free for qualified medical expenses in retirement.

 

To Use Or Save Your HSA? 

Your HSA is your money and you decide how to spend it on qualified medical expenses like copays, deductibles, dental care, contacts and eyeglasses, prescriptions, and a lot more. Or you can save and invest your HSA to use in retirement.

If you can pay your current medical expenses out of pocket now to allow your HSA dollars to be invested, your HSA could grow to become a meaningful way to pay for your medical expenses in retirement. Learn more about your options below to make the best decision for you.

Save Your HSA Funds to Use in Retirement
 

  • Use HSA dollars to help cover insurance premiums, which may increase if you retire before you’re eligible for Medicare.

  • Use your HSA as a long-term investment strategy to help pay for retirement medical costs. The longer your dollars are invested, the more likely they can grow.

  • Before age 65, there is a 20% penalty if HSA funds are used for nonqualified medical expenses, but after age 65 this penalty goes away. You’ll be taxed on the withdrawal if it isn’t for an eligible medical expense, but you won’t pay a penalty fee.

  • Saving your HSA dollars for retirement means you will need to be able to pay for pre-retirement expenses with only a portion of your HSA or with non-HSA money.

    • Use Your HSA Funds Now 
     

  • HSA funds are tax-free, so you won’t pay taxes on your contributions.

  • This money can help you cover medical expenses now.

  • HSA withdrawals are tax-free when used for qualified medical expenses.

  • If you need to use your HSA dollars for nonqualified medical expenses, you’ll pay taxes as well as a 20% penalty fee on the money you withdraw.

  • Spending HSA money now means not having it in the future.

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    Ways to Use Your HSA

    Did you know you could use your HSA to help pay for COBRA and Medicare?

    Get the Full Details from the IRS 

    Questions?

    • For questions about Delta’s Health Savings Account (HSA), please contact Optum.

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    1 Estimates based on a hypothetical single person or opposite-sex couple retiring in 2023, 65-years-old, with life expectancies that align with Society of Actuaries' RP-2014 Healthy Annuitant rates projected with Mortality Improvements Scale MP-2020 as of 2023. Actual assets needed may be more or less depending on actual health status, area of residence, and longevity. Estimate is net of taxes. The Fidelity Retiree Healthcare Cost Estimate assumes individuals do not have employer-provided retiree healthcare coverage, but do qualify for the federal government’s insurance program, Original Medicare. The calculation takes into account cost-sharing provisions (such as deductibles and coinsurance) associated with Medicare Part A and Part B (inpatient and outpatient medical insurance). It also considers Medicare Part D (prescription drug coverage) premiums and out-of-pocket costs, as well as certain services excluded by Original Medicare. The estimate does not include other health-related expenses, such as over-the-counter medications, most dental services and long-term care.