HSA News for November 25, 2019
HSA news is compiled weekly by Mr. HSA Roy Ramthun.
News from Washington
Senate Leadership Trying to Work Out Competing Surprise Medical Bill Measures
On November 19, Senate Minority Leader Charles Schumer (D-NY) said that congressional leadership is trying to work out differences between competing measures to protect patients from getting hit with massive, “surprise” medical bills. The effort is a rare area for possible bipartisan action this year.
Trump, Senators Push for Drug Price Disclosures Despite Setbacks
President Trump and senators from both parties are not giving up the fight over forcing drug companies to disclose list prices in TV ads. Both the White House and Congress are searching for an easy political win on drug prices, but so far have found little success.
Top GOP Senator: Drug Pricing Action Unlikely Before End of Year
Sen. John Thune (R-SD), the Senate’s No. 2 Republican, said that it is unlikely the Senate will pass legislation to lower drug prices before the end of the year. The effort is running into obstacles and a range of competing plans.
Hospitals Push Back on Price-Disclosure Rule
Hospitals are pushing back against the Trump administration’s new health-pricing disclosure rule, with the industry planning a legal challenge to block it. If the final rule, released November 15, takes effect, the requirements would be a major change for the health industry, where the negotiated prices are kept secret.
HSA Studies & Analysis
Why Fidelity Is Our Favorite HSA in 2 Charts
Given the different use cases, our study ranked HSAs from two perspectives: As a spending account to cover current medical expenses, and as an investing account to save for future medical expenses. Below, we illustrate why Fidelity is the best option for both uses cases in two charts.
HSA Compliance Corner
No HSA Substantiation? Not Exactly
Substantiation requirements for Health Savings Account withdrawals are different from the standard that Health FSA participants must meet. But don’t be fooled into thinking that you’re off the hook entirely.
Answering Thorny HSA Questions from Employees
I’ve spent a good deal of time during the last three weeks interacting with brokers, employers, and employees during open enrollment meetings and fielded a lot of questions about HSAs. Several compliance topics account for the bulk of those conversations. These concepts are important and worth reinforcing.
HSA Industry News
MetLife Adds HSA, FSA and Commuter Account Options
MetLife is adding tax advantaged savings accounts to its product line-up come 2021. The insurance company’s new offerings will include the HSA, FSA, limited purpose FSA, dependent care FSA and commuter benefits. MetLife’s new HSA will be tied to its high deductible health plan.
The HSA Market
Why It Almost Never Makes Sense to Purchase Gold or Platinum Healthcare Coverage
You may be wondering why anyone would want a "Bronze" plan that only covers 60% of healthcare expenses with a high deductible to boot. In reality, though, high deductible plans are usually the best deal from a financial standpoint. Better yet, consumers with HDHPs can save money in an HSA.
Jim Gandolfo on the HSA Legacy
In this interview, Jim Gandolfo talks about his proudest moments and biggest challenges as head of the HSA industry council and a top lobbyist for HSAs on Capitol Hill.
2019 TAPO Jamie Greenleaf Has a Lot to Say About HSAs
Jamie Greenleaf was named the 2019 Top Advisor by Participant Outcomes (TAPO). Here she describes HSAs and how she’s making them work for her clients and her business.
HSAs & Retirement
5 Ways HSAs Can Help Employees Save for Retirement
HSAs are one way employees can save for retirement because they offer a tax-advantaged way to set aside money for qualified medical expenses. They’re also a great way to invest alongside other retirement accounts. Open enrollment is the time to consider their many benefits.
Turn Your HSA Into a Retirement Plan
Unlike many retirement plans, there is no income limit for HSA contributions. The contribution limits for HSAs are calculated separately from retirement plans. This means that you can contribute to an HSA after maxing out your other retirement plan contributions. Even high-income earners who can’t make a deductible IRA or Roth IRA contribution can still make deductible HSA contributions.
How a Trump Order Could Help Medicare and HSAs Work Together
I am urging the Social Security Administration and Congress to cease requiring everyone who receives Social Security benefits to also enroll in Part A of Medicare. If this current rule is changed, I expect to save countless hours answering the many reader questions I receive about how this requirement conflicts with rules for HSAs.
House Conservatives Offer Seniors Better Healthcare Options With Nothing Taken Away
There are two additional benefits Medicare seniors get under the House conservatives' plan. The first new feature is that Medicare payment for telemedicine will be much more flexible and easy. The second benefit is that Medicare seniors will be able to own, use, and contribute to an HSA, meaning that older people can pay for out-of-pocket healthcare costs using pre-tax dollars.
Understanding Medicare Surcharges
Since 2007, high-income Medicare enrollees have been paying surcharges on their premiums for Part B and Part D and the surcharges can be steep. Some advance planning on your mix of investment products, such as HSAs and Roth conversions prior to retirement over a traditional tax-deferred vehicle, can help mitigate the impact of these surcharges.
Maximizing Your HSA
11 Practical HSA FAQs
HSAs are considered a smart financial move for employees who want to–and are able to–put aside money for health care expenses or save and invest money to pay for future health care costs in retirement. Here are answers to 11 frequently asked questions about HSAs.
What Is a Health Savings Account? Understanding the Purpose of an HSA
If you enroll in an HDHP and you have money to save for future health care expenses, opening an HSA allows you to save money on taxes and help pay for health costs when they come along. The National Association of Insurance Commissioners has information on how an HSA can benefit you.
There Were a Lot of HSA Questions. Here Are Some Answers.
Following our recent article on HSAs, we received dozens of questions from our readers. Here are our responses.
Don’t Leap Into Just Any HSA: 4 Factors to Consider When Choosing an HSA Administrator
Banks, credit unions, insurance companies and other financial institutions — referred to as “administrators” or “custodians” — offer HSAs. So, how do you choose an HSA plan provider that would be best for you? Here are four important factors to keep in mind before choosing your HSA.
Consumer-Driven Health Care
When Is an HDHP With an HSA a Good Choice?
Open enrollment is a time to compare premiums and deductibles and copays, guess about your health care needs for the coming year, and gamble on which health insurance will be the best bet for you, financially. If you’re debating an HDHP with an HSA versus a more traditional health plan, here are some things to consider.