HSA News for January 20, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Powerful House Committee Is Latest to Take Stab at ‘Surprise’ Billing Fix
The leaders of the House Ways & Means Committee are aiming to break through a legislative quagmire as Congress tries to deliver on the stubbornly elusive goal of protecting patients from "surprise" medical bills. Any solution will have to come fast since all involved agree the best chance of moving a fix comes in May.
Sens. Thune, Carper Lead Bipartisan Legislation to Strengthen Chronic Disease Management Effort
U.S. Sens. John Thune (R-SD) and Tom Carper (D-DE) this week introduced bipartisan legislation to ensure that HSA-qualified plans can cover care related to chronic disease management prior to a beneficiary reaching their plan deductible.
Rep. Warren Davidson (R-OH) Introduces P lan to Expand HSAs and Healthcare Price Transparency
My new healthcare bill makes it easier to save money and take better care of our health by making healthcare more affordable. The bill would expand access to HSAs to everyone and increase the amount that account holders can invest in their HSAs each year. The bill also treats HSAs like other assets by making them inheritable.
HSA Studies & Analysis
HSA Balances Show Continued Growth
Average HSA balances increased from $1,990 in 2011 to $2,803 in 2018, according to a new report by the Employee Benefit Research Institute. Average total contributions—combined individual and employer contributions—increased from $2,348 to $2,919 between 2011 and 2018, according to the report.
HSA Compliance Corner
"Mr. HSA" Projects 2021 HSA Amounts
With the January 14 release of the December inflation figures by the Bureau of Labor Statistics, the inflation-adjusted amounts for HSAs for 2021 are coming into view. I can now project the HSA amounts for next year with virtual certainty. I am projecting that the HSA contribution limits will increase for 2021.
Tax- and Penalty-Free HSA Distribution for Non-Qualified Expense? Maybe!
An HSA owner pulls out his HSA debit card to pay for his son’s wedding rehearsal dinner. Is this expense subject to taxes and penalties? What action must you take to ensure that you’re not hit with taxes and penalties if you pay the bill with your HSA debit card?
Can Our Major Medical Plan Impose Cost-Sharing for Preventive Services Delivered by Out-of-Network Providers?
Can our plan impose cost-sharing for preventive services that are delivered by out-of-network providers? Plans that use a network of providers to provide preventive services are not required to cover preventive services delivered by out-of-network providers and can impose cost-sharing requirements if out-of-network preventive services are covered.
HSA Industry News
New HealthEquity Investment Desktop Maximizes Ease of Investing HSAs
HealthEquity has announced the release of an elevated, digital platform experience, transforming the way members manage and grow their HSAs. The desktop solution is designed to help address key barriers keeping individuals and families from investing their HSAs.
HSA Best Practices
HSA Investment Menus Shouldn’t Just Replicate Those of DC Plans
Investing HSA assets can help participants grow their balances for current and future health care expenses. Often plan sponsors mirror their defined contribution plan investment lineup in their HSAs, but a white paper from Devenir suggests this may not be the best strategy.
The HSA Market
The Growing Role AI Will Play in HSAs and Employee Benefits
Artificial intelligence is playing an increasingly important role in many aspects of business, including human resources. Among the areas where AI will likely continue to have big impacts are HSAs and employee benefits. With forward-looking administrators applying AI, the HSA and employee benefits markets are being disrupted in a big way.
HSAs & Retirement
3 Reasons Why Women Should Use HSAs to Save for Retirement
According to a recent study, women are only contributing half as much to their retirement accounts annually as men are. It is imperative that women establish a strong foundation early in their careers for their retirement savings. And while 401(k)s and IRAs are great retirement savings vehicles, there’s an often-overlooked vehicle that outshines them both: an HSA.
If You’ll Hit Age 65 Soon and Are Still Working, Here’s What to Do About Medicare
You’re creeping closer to your 65th birthday, which means you’ll be eligible for Medicare, yet you already have health insurance through work. Sound familiar? If so, you might have options. While workers at businesses with fewer than 20 employees generally must sign up for Medicare at age 65, people working for larger companies typically have a choice.
Maximizing Your HSA
Your Annual HSA Check-Up
If you haven’t done your financial planning prior to the new year, January is a good time to review your accounts and set your priorities for the year. And your HSA, even though it’s often viewed as part of your medical benefit, is more accurately viewed as a financial account. Treat it as such.
Real Estate Investing With Your HSA
While the healthcare industry continues to promote the growth of HSAs, the versatility of the HSA may still contain a few surprises, even for those who have held their accounts for many years. For instance, how many know they can buy rental property with their HSA? “Not many” would be a safe bet.
Consumer-Driven Health Care
Confronting Fresh Health Insurance Deductibles
The new year often starts harshly for people with high-deductible health insurance as many deductibles reset January 1. More patients are using tax-exempt HSAs to set aside money that can soften this early-year crunch. But there are no simple solutions to erase the problem for those without such accounts or the means to stock them. But patient advocates see several ways to get relief. Here are some examples.
26% of Americans With Children Regret This Financial Decision
Recent data reveals that 26% of families did not contribute to an HSA or health FSA over the past two years. And that's a mistake they regret. If you have the option to save in an HSA or FSA, it pays to take advantage of it. You'll reap a world of tax savings, which will put more money back in your pocket.
CMS-Specified Shoppable Services Accounted for 12% of 2017 Health Care Spending Among Individuals With Employer-Sponsored Insurance
CMS specifies 70 services for which hospitals must make price information available (the remaining 230 will be selected by hospitals). An analysis by the Health Care Cost Institute shows that the 70 CMS-specified shoppable services totaled 12% of medical spending and 16% of out-of-pocket spending among individuals with employer-sponsored insurance in 2017.