HSA News for January 13, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Congress' Health Agenda Barrels Toward 2020 Buzz Saw
Republicans and Democrats have a narrow opening to cut big deals on drug pricing and surprise medical bills and address two key concerns of voters — just in time for 2020 electoral politics to drive them apart.
HSA Studies & Analysis
HSA Enrollment Rises Even as Full-Replacement Strategies Decline
Even as some employers backed away from full-replacement strategies, enrollment in high-deductible account-based plans rose from 33% of all covered employees last year to 36% in 2019. These plans are offered by 71% of large and midsize employers, up from 68% in 2018, and by 37% of small employers.
Longer-Term HSA Holders Maximize Benefits for the Future
The longer an employee has an HSA, the more likely he is to invest and save funds in the account for future expenses, according to an analysis from the Employee Benefit Research Institute. On average, HSA owners appear to be using HSAs as specialized checking accounts rather than investment accounts, but this behavior appears to change the longer an HSA owner holds an account.
HSA Compliance Corner
To Treat or to Prevent? That Is (Still) the HSA Question
This past summer, the IRS expanded the list of preventive care services that may be covered before the deductible is met without loss of HSA eligibility. Generally, this Notice was welcome news. However, as many employers have begun incorporating some, most or all of "the List", the Notice’s answers have yielded more questions. We’ve highlighted two common issues here.
HSA Industry News
Fidelity Introduces HSA for Financial Intermediaries
Fidelity Investments is now offering a full-service HSA for financial intermediaries. Broker-dealers, banks and RIA clients of Fidelity Clearing & Custody Solutions now have access to the multifaceted product, which helps advisors to diversify their product offerings through the platform’s more than 10,000 mutual funds, stocks, bonds and ETFs.
HSA Best Practices
Balancing the Risks and Rewards of Saving Through an HSA
Many employees now have two accounts that employers are encouraging them to contribute their hard earned money to: a 401(k) and an HSA. When deciding whether and how much to contribute, one important consideration is that diverting savings from the 401(k) to the HSA can cost employees their 401(k) match. There is a way around this problem, however.
The HSA Market
High-Deductible Plans Jeopardize Financial Health of Patients and Rural Hospitals
Plans with annual deductibles of $3,000, $5,000 or even $10,000 have become commonplace since the Affordable Care Act. But in rural areas, where HDHPs are even more prevalent and incomes tend to be lower, patients often struggle to pay those deductibles. But small rural hospitals are suffering, too.
HSAs & Retirement
Can Employees Afford Retirement & HSA Plan Contributions?
Plan sponsors are often surprised to learn retirement & HSA plan contributions have a complementary relationship. Learn why employees can save for both.
Maximizing Your HSA
3 Reasons to Open an HSA in 2020
Healthcare is a major expense for Americans of all ages, and medical issues are the No. 1 source of personal bankruptcy filings in the country. If you're concerned about paying for healthcare, then you should definitely see if you're eligible to open an HSA. Here are three reasons it really pays to do so.
Too Late to Contribute to Your HSA for 2019? Nope!
It's not too late to contribute to your HSA for 2019. And it may be advantageous to do so. Yet many don't know it. So, let's clear up this misconception now.
Contributing to Your HSA for 2019 and 2020
You can still make contributions to your HSA for 2019 as late as April 15, 2020. But should you? Here are the right questions to ask and answer.
4 HSA Mistakes to Avoid in 2020
Contributing to an HSA, is a great way to not only lower your taxes, but also help ensure that you have the money to cover near-term and long-term healthcare costs. But if you mismanage that account, it won't serve you very well. Here are a few key HSA mistakes to avoid in the coming year.
Consumer-Driven Health Care
Rx Price Transparency Is Key to Lowering Health Care Costs
Shadowy hospital pricing is just the tip of the opaque iceberg that is driving up the costs of health care in America. To inject more competition into the industry, Congress and the White House needs to shed light on the pharmacy benefit manager (PBM) middlemen who keep prescription drug prices high.
Smart Tips to Manage High-Deductible Health Plan Costs
Whether you have a traditional plan or a high-deductible plan, out-of-pocket costs often hit people the hardest at the start of the year when coverage is minimal due to reset deductibles. Fortunately, there are a few simple ways to manage the influx of health care costs at the start of the year so you can save money and stay healthy.
HDHPs Spur Maternity Out-of-Pocket Spending
The rise in HDHPs may be leading to high maternity out-of-pocket spending, researchers have discovered. It might come as a surprising twist that the cost of maternity care was relatively stable from 2008 to 2015. Instead, women were taking on a greater share of the cost, leading to higher out-of-pocket spending.
Telemedicine Could Change the Way You Visit Your Doctor. Are We Ready?
Telemedicine is growing rapidly. Usage is up 53% from 2016 to 2017, according to a J.D. Power study.
The study cited low awareness about the technology as the main obstacle to telemedicine's growth. But patient skepticism is also an issue.
Americans Lack Knowledge on Key Healthcare Concepts, Data Shows
Healthcare is a monumental expense for Americans of all ages. But the more you know about your health insurance benefits, the better equipped you'll be to manage the costs associated with your medical care. Unfortunately, a new HSA Bank report reveals that Americans seriously lack knowledge on the health benefits front. Here's what those gaps currently look like.