HSA News for January 27, 2020
HSA News is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Supreme Court Denies Blue States' Effort to Expedite Obamacare Challenge
The Supreme Court rejected an effort by House Democrats and a group of blue states to expedite a challenge to a lower court's ruling striking down a key tenet of Obamacare, narrowing the possibility that the court takes up the contentious case this year. Democrats had asked the court to fast-track their appeal after the 5th Circuit Court of Appeals ruled that the ACA's individual mandate is unconstitutional.
High Drug Costs Outweigh ‘Medicare for All’ as Top Healthcare Issue for Voters
The debate over "Medicare for All" may be dominating the Democratic presidential campaign, but most voters are focused on a more basic pocketbook issue: prescription drug prices. In poll after poll, the high cost of medications is at or near the top of voters’ healthcare concerns, far outpacing interest in moving all or some people into Medicare-like coverage.
Conservative Groups Aim to Sink Bipartisan Fix to 'Surprise' Medical Bills
A broad swath of free-market conservative groups is mobilizing to oppose a measure that would ban so-called “surprise” medical bills. The groups argue the legislation is on par with “price controls” or “rate-setting” that would give the government too much power in the private sector and pave the way for Medicare for All.
HSA Studies & Analysis
Lively Releases 2019 Data Showing HSA Users Are Spending, Not Saving
Lively, Inc. released its second annual HSA Spend Report, giving a view into how and where consumers spend on healthcare costs each year. Findings show that 96 percent of annual contributions were spent on expected expenses and routine visits, indicating that most people are not achieving the long-term benefits of using an HSA to save for unexpected health events and healthcare in retirement.
HSA Compliance Corner
$1,400 Deductible = HSA-Qualified Plan? Nope!
The deductible on an HSA-qualified plan must be equal to or greater than the statutory minimum annual deductible set by the Internal Revenue Service. In 2020, that figure is $1,400 for self-only and $2,800 for family coverage. In most cases, deductibles far exceed that amount. But the level of deductible alone doesn’t determine an HSA-qualified plan. It must meet two other requirements.
Oops! I Contributed to My HSA After I Lost Eligibility. Now What?
When HSA owners make contributions for months that they’re not eligible, they need to take action to remain in compliance with tax law. Here’s what they need to do.
HSA Industry News
HSA Bank, Principal Pair HSA, Retirement Savings Information
HSA Bank announced a new relationship with Principal Financial Group to offer customers a convenient way to view their HSA balances alongside the rest of their retirement plan information. The collaboration gives Principal customers with an HSA through HSA Bank easy access to a comprehensive online snapshot of their retirement portfolio—one that includes their HSA balances.
TIAA Unveils Institutional HSA Offering
TIAA announced that it will offer HSAs to its institutional retirement plan clients to help their participants prepare for health care expenses now and in retirement. The TIAA HSAs will be administered by HealthEquity and will work in concert with TIAA retirement plans. The TIAA HSA will be available in the first quarter to all institutional clients that offer employees an HDHP.
The HSA Market
HSA Investment Options
HSAs may be the most powerful choice in the benefits toolbox, but few employees take advantage of the investment potential. HSA providers are taking the long view, however, and seeing a point over the horizon where investment is more commonplace. Fund and recordkeeping giants Fidelity, Vanguard and Empower all have a presence in the market.
HSAs & Retirement
Making and Keeping New Year's Resolutions for Retirement
It's practically inevitable that as we age our medical expenses will increase. If you’re on an HDHP, you can contribute to your HSA now, and help prepare for this big budget item down the road. Use the start of the new year to revisit potential medical expenses and determine if you need to boost the amount you contribute to your HSA, particularly if you are getting closer to retirement.
Maximizing Your HSA
3 Things Keeping You From Maximizing This Tax-Favored Account
HSAs come with a bevy of tax benefits. But as attractive as these features may be, few people are maximizing their options, according to recent data. Here are three reasons why your HSA may be falling short of its potential.
Consumer-Driven Health Care
31% of Americans Have Made This Smart Financial Move
If you want to make sure you have enough cash on hand to cover your healthcare bills, you may want to open a specific healthcare emergency fund. Only 31% of Americans already have. The amount can be based on your specific needs and concerns, but at the very least, you'd be wise to sock away the equivalent of your annual deductible. Another option? Open an HSA, if you're eligible.