If you’re enrolled in the Health Savings Plan, you and Sandia contribute to a Health Savings Account (HSA). You can use your HSA during retirement to cover qualified medical expenses, including deductibles, copays and coinsurance.

Bridge the gap to Medicare

If you retire before age 65, you’ll need healthcare coverage before you’re eligible for Medicare. You can’t pay for most private coverage with your HSA money, but you can use your HSA to pay for healthcare coverage you purchase through a Sandia-sponsored plan under COBRA or to pay premiums while you’re receiving unemployment compensation.

Cover certain Medicare expenses

You can cover premiums for Part A, Part B, Part D and Medicare Advantage but not supplemental (Medigap) coverage. If you’re over age 65, you can also use your HSA to pay your share of costs for your Sandia-sponsored retiree health coverage.

Pay long-term care expenses

The money in your HSA can cover part of the cost of a “tax-qualified” long-term care insurance policy.

Cover other expenses

Once you reach age 64, you can use the funds in your HSA to pay for non-qualified expenses. You’ll have to pay state and federal taxes on those distributions.

For more information, review five ways HSAs can help with your retirement.

Get answers to all your Medicare questions. Even if you’re not Medicare-eligible yet, it’s good to know how your Sandia medical benefits (if you are eligible for them) will coordinate with Medicare, so you better understand the financial impact of your healthcare costs in retirement. For everything you need to know about Medicare, visit medicare.gov. There, you can create an online account, find information about health and drug plans, locate providers and sign up for automatic alerts so that you stay up to speed on the latest Medicare news and updates. You can also access the 2025 Medicare and You handbook.

If you’d prefer to speak with someone, call 800-MEDICARE (800-633-4227). TTY users can call 877-486-2048.

Specific strategies for how and when to take Social Security depend on your individual circumstances. The sooner you take your benefit, the lower the amount you will receive, but you will receive benefits for a longer period. Conversely, if you wait until full retirement age or later, your monthly benefit increases. You may be entitled to spousal benefits even if you’re divorced and remarried, or survivor benefits if you outlive your spouse.

Learn more. Speak with your local Social Security office and/or a financial professional to determine what’s best for you. To estimate your Social Security benefit, determine when to apply for benefits and explore more information, visit ssa.gov. You can subscribe to the Social Security Administration’s blog and follow them on social media.