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Fulton County Council seeks legal answer on whether Medicare enrollment disqualifies HSA contributions
Summary
Council members and affected employees debated whether enrolling in Medicare prevents county workers from receiving Health Savings Account contributions; the council agreed to submit a narrowly focused legal question to a tax attorney and return with an opinion.
Council members and county employees spent the meeting’s opening hour debating whether county employees who enrolled in Medicare are ineligible for county Health Savings Account (HSA) contributions.
The council chair opened the item by saying the HSA question needed to be resolved after lengthy debate and asking whether anyone who had taken Medicare had rolled back enrollment. "IRS law says that if you take Medicare ... you cannot get the HSA," the chair said, summarizing the concern that Medicare entitlement may disqualify recipients from HSA contributions.
County staff and an advisor told the council the issue hinges on federal HSA guidance. One staff presenter described four eligibility bullet points and said his reading of IRS guidance tied eligibility to Medicare entitlement rather than age, meaning enrollment could bar HSA contributions: "Those four bullet points are just very clear in ... what makes you eligible to receive that HSA contribution." Several employees who said they followed earlier council guidance to sign up for Medicare urged the council to "make it right," saying they relied on public advice and private insurance counselors who gave conflicting information.
Council members raised practical concerns about fixing the problem, including whether Medicare enrollment can be reversed without penalty. "If you use any benefits, you can't roll that back," the chair said, adding uncertainty about legal routes to restore eligibility.
After extended discussion, the council agreed on a clear next step: prepare a narrowly scoped written question for the county's tax counsel so staff can obtain a definitive legal opinion. A staff attorney who said he had a tax attorney on staff asked the council to supply a specific question to pose to that lawyer. The council agreed to do so and to return when the attorney’s written response is available.
The council did not take any immediate policy action. The next procedural step is for staff to draft and submit a narrow legal question about HSA eligibility and Medicare enrollment to the county's tax adviser and report back at a future meeting.
