Q.- Can an employee on Medicare participate in our FSA or HSA?
A.- Medicare would not prohibit contributing to a Health FSA (if permitted by the terms of your plan). Since an HSA is available only to an individual with a high deductible health plan and no other health coverage, a person with Medicare coverage would not be eligible to contribute to an HSA. If the person already had an HSA, they would still be able to use funds in the account.