HSA News for December 9, 2019
HSA News is compiled by Mr. HSA, Roy Ramthun.
News from Washington
Congress Races to Beat Deadline On Shutdown
Congress is racing the clock as they rush to prevent another shutdown poised to start in two weeks. Though lawmakers have until December 20 to get a funding bill to President Trump’s desk, negotiators say they really have just a matter of days to reach a deal on the fiscal 2020 bills to prevent having to approve another stopgap measure.
Hospital Groups Sue to Block Price-Transparency Rule
Hospital groups sued to block a Trump administration rule forcing them to disclose secret rates. The lawsuit filed December 4 says the rule compelling the hospitals to publish their negotiated rates with insurers violates the First Amendment and goes beyond the statutory intent of the Affordable Care Act.
Labor Unions Team Up With Drug Makers to Defeat Drug-Price Proposals
A coalition that includes major drugmakers as well as large construction-industry unions whose members help build pharmaceutical plants and research labs has been buying print advertisements in local newspapers, mailing fliers to voters in vulnerable Democratic districts, and hiring former labor officials and well-known union lobbyists to deliver their message.
Candidates Are Betting Big On Health. Is That What Voters Really Want?
The one thing we know about health care in the 2020 Democratic presidential primary race is that it’s a top issue for voters. The big question, though, is whether that interest will reward a candidate who backs a sweeping, “Medicare for All”-type plan, or a more modest plan like a public option. Polling doesn’t make that clear.
HSA Studies & Analysis
EBRI: HSA Balances Growing Despite Obstacles
A newly released study conducted by the Employee Benefit Research Institute exploring the savings, spending and investment behavior of employees owning HSAs finds the average HSA balance in 2018 grew to $2,803 from $2,071 in the beginning of the year, even with distributions being taken and most funds being left in cash, rather than invested.
HSA Bank Report Shows Consumers Are Not Saving for Healthcare
According to a report released by HSA Bank on December 4, over half of Americans are not saving for healthcare, and one in five insured are not confident they can cover an unexpected medical expense in the next year. However, consumers insured under an HSA-eligible health plan are the most likely to save frequently for healthcare, compared to consumers enrolled in other plan types.
HSA Compliance Corner
Family HSA with Family Medical Coverage? Not Exactly
Although I alone own my HSA, I can reimburse other family members' qualified expenses tax-free from my account. I can order extra debit cards for additional family members, including my spouse and children whose qualified expenses can be reimbursed tax-free. But I alone own the account.
Waive Coverage and Participate in Your Company's HSA Program?
If your company offers an HSA program and you waive medical coverage, you may or may not be able to receive an employer contribution or make pre-tax salary deferrals. This is a decision that your company must make.
HSA Industry News
Starship Raises $11 million to Expand Access to HSAs
Fresh off of a Series A investment of $7 million led by Valar Ventures—bringing total money raised to $11 million—fintech startup Starship is making portable HSAs available to drivers, delivery persons and carriers who use the Uber app.
HSA Best Practices
How to Maximize Employee Participation in HSA Plans
With such a small percentage of HSA owners taking advantage of investment opportunities, finding effective ways to support the spending or saving habits of the majority of users seems to be tantamount. So, how can employers support these spenders and savers?
The HSA Market
Taxpayers Save in Omaha's Push for High-Deductible Health Insurance for All City Employees
On December 9, Omaha will vote on a contract with Omaha fire managers that moves them onto the city's high-deductible health insurance plan, joining most other city employees. A key reason city employees have accepted the health care change is that the city agreed to contribute at least $1,300 a year to the HSA of an individual and at least $2,600 a year for families.
Employers Seek the Best Healthcare Benefits, Prefer HMOs and PPOs
According to a new survey by Transamerica Center for Health Studies, 59% of employers offered HMO and PPO plans in 2019. Under 45 percent provided alternatives such as HDHPs, HSAs, FSAs, and HRAs.
HSAs & Retirement
31% of Older Americans Expect This to Be Their Largest Expense in Retirement. And They're Probably Right
In a recent Nationwide survey, 31% of Americans ages 50 and over anticipate healthcare being their single greatest expense in retirement. If you're worried about affording healthcare in retirement, there are a few key steps you can take to ease that concern.
How to Plan for Healthcare Costs That Could Derail Your Retirement
People work for decades with a hopeful eye toward retirement. But while many try to envision their retirement years as a blissful time of fun and relaxation, no one has a crystal ball showing exactly what all the expenses will look like. This is especially true of healthcare. How do you plan for that great unknown — healthcare costs in retirement?
Unsung Hero: The HSA and Retirement Savings
While many employees still think of an HSA as little more than an FSA with a rolling balance, its value as a retirement savings vehicle has been largely under-appreciated. In fact, some retirement experts are even going as far as to advise employees to max out their HSA contributions before maxing out what they’re kicking in to their 401(k). Consider the following comparison.
Maximizing Your HSA
Signing Up for an HSA? First Figure Out How You’ll Use the Money
The number of HSAs continues to grow, but figuring out which plan will work for you may depend on how you will use the money, a new analysis finds. Do you intend to use it for current medical expenses or to save the money and invest it for future costs, perhaps in retirement — as if it were a 401(k) for health care?
5 Costs to Keep in Mind When Picking an HSA
HSA investors will have a tough time comparing costs of one HSA to another because of layers of fees and potential opportunity costs embedded at most providers. Costs differ significantly from one provider to the next and factor heavily into our evaluations. This article highlights five types of explicit and implicit costs that HSA investors should be mindful of.
Qualified HSA Funding Distributions
A financial advisor from South Dakota recently asked, “Can a person fund his or her HSA with a distribution from a 401(k) plan?” No. However, an owner of an HSA may have a one-time opportunity to use a trustee-to-trustee transfer of dollars from his or her traditional or Roth IRA to fund his or her HSA.
Consumer-Driven Health Care
Health System Deploys Cost Calculator to Offer Patients Price Transparency
One area in the patient experience that needs improving is price transparency before patients schedule healthcare services. The Trump Administration has even mandated that hospitals make this happen by posting the prices for “shoppable” healthcare services online. Some healthcare provider organizations are several steps ahead of this mandate.
Healthcare Consumers Lack Knowledge of Basic Health Insurance Terms
Findings from a recently released survey show how challenging health insurance is for many American consumers to understand. More than 50% of people surveyed didn’t know what a co-payment or deductible was. More than 25% said they had avoided healthcare because they were unsure what their insurance covered.