HSA News for October 12, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Trump Proposes $1.8T Coronavirus Relief Package
President Trump and his aides on Friday offered Speaker Nancy Pelosi (D-CA) a $1.8 trillion coronavirus relief package, sources said, as the president urged the negotiators to “go big.” The new figure was a jump from the White House’s $1.6 trillion offer last week, but there was no indication that Pelosi would come down from her demand for a $2.2 trillion package.
McConnell: Coronavirus Relief Deal Unlikely Before Election
Senate Majority Leader Mitch McConnell (R-KY) signaled on October 9 that he does not expect Congress and the White House to reach a deal on a coronavirus package before the elections, citing steep political headwinds. McConnell called the dynamics around the months-long, off-on negotiations "murky," adding that he didn't expect it to get resolved before November 3.
Voters Support Allowing All Americans to Pay for Healthcare Tax Free by Four to One Margin
Two-thirds of the American people support expanding HSAs so that all Americans can pay for their health care tax-free during the duration of the coronavirus pandemic, according to polling conducted by John McLaughlin. The polling data found Americans support expanding HSAs during the pandemic by a ratio of four to one – with 67 percent of respondents supporting the policy and just 15 percent opposing.
Increasing Share of Americans Favor a Single Government Program to Provide Health Care Coverage
A majority of Americans continue to say the federal government has a responsibility to make sure all Americans have health care coverage. And since last year, there has been an increase – especially among Democrats – in the share saying health insurance should be provided by a single national program run by the government, according to a Pew Research Center survey.
HSA Studies & Analysis
The 7 Best HSA Providers of 2020
You should know that you can open an HSA with any provider you want. Investopedia compared more than 15 companies who offer HSAs nationwide to find options with reasonable fees (or no fees), minimal requirements to get started, and plenty of smart investment options for your money.
HSA Compliance Corner
Using an HSA for Non-Medical Expenses
What are the tax consequences of using an HSA to pay for non-medical expenses? Short Answer: Non-medical HSA distributions are subject to ordinary income tax at all ages, and they are also subject to a 20% additional tax for individuals who are under age 65.
HSA Industry News
Wex Study Finds Improved Perception of HSAs and Telemedicine Amid Pandemic
WEX released its second annual consumer study that examines Americans’ behaviors and attitudes about healthcare benefits ahead of 2021 open enrollment. As a result of the pandemic, HSA contributions have increased for many. Roughly a quarter of respondents are now contributing more to their HSAs due to the COVID-19 outbreak.
Fifth Third Bank and Health iPASS Announce Strategic Relationship
Fifth Third Bank announced a strategic relationship with Health iPASS, to offer a comprehensive set of tools for Fifth Third’s healthcare clients. The full product suite includes touch-free virtual check-in for patients and payment assurance with card-on-file. This announcement follows an investment in Health iPASS earlier this year by Fifth Third Capital Holdings, an affiliate of Fifth Third Bank.
Industry Best Practices
3 Tips to Help Employees Understand FSA/HSA Changes During Open Enrollment
Employee communications and education has to take a front seat during open enrollment. One benefit, in particular, that has seen significant change this year is tax-advantaged spending accounts such as FSAs and HSAs. Here are three things benefits professionals can do to give employees a solid foundation of knowledge during open enrollment this year.
5 HSA Myths Busted and What Happens Next
Apparently the majority of employees don’t understand HSAs, according to recent reports. One of the harder-to-solve parts is the confusion and uncertainty about HSAs. Here are five common HSA myths, according to a new whitepaper. Once the myths are busted, communications can continue. DCIIA has several suggestions about the points employers might want to make with employees about HSAs.
The HSA Market
Family Plan Premiums Rose 4% This Year for Commercial Plans, Deductibles Stable
The annual family premiums for employer-sponsored health plans rose by 4% to $21,342 this year compared to 2019, according to a new survey from the Kaiser Family Foundation. Kaiser found that the average single deductible for a worker is $1,644, which is similar to the $1,655 average from 2019. However, that is a major increase from the average $917 back in 2010.
UBA Health Plan Survey Shows Modest 2020 Group Health Plan Cost Increases, Helping Employers Maintain Benefit Plans in Uncertain Times
According to the 2020 United Benefit Advisors Health Plan Survey, premium renewal rates for employer sponsored health insurance again rose modestly in 2020 at 5.4%. With fewer cost burdens, employers largely kept in-network deductibles and routine copays flat for singles, although in-network deductibles for families are inching up by $500 on average.
How the Pandemic Has Shifted the Benefits Conversation
The benefits space is changing and there is currently a shift to “enviable benefits” – ones that go beyond traditional health and retirement coverage. Many employers are once again struggling financially, and HDHPs along with HSAs present an opportunity for companies to save, especially for those who don’t offer them already.
Here's How Google, Amazon, Facebook and Apple are Targeting the Health Insurance Market
Tech giants are ramping up their investments in digital health initiatives, signaling some significant moves to target the health insurance space. Google, Facebook, Apple and Amazon have invested heavily in personal health monitoring devices and virtual care and have been able to integrate these capabilities into health insurance offerings relatively easily, according to an analysts.
What Is the Difference Between an FSA, HRA and HSA?
FSAs, HRAs and HSAs all offer tax-free savings employees can use to pay for eligible medical, dental and vision expenses. The type of account employers offer depends on what type of healthcare insurance plan(s) they provide. Although the purposes of these accounts are similar, there are a few key distinctions that will determine which one is right for your company.
3 Innovative Strategies for Improving Group Retention
Perpetually increasing costs at the same time that plans continue to get worse makes traditional group health insurance feel like a constant, uphill battle for customer retention. Thankfully, necessity promotes invention. If you have been looking for new ways to stay competitive during renewal and open enrollment season, check out the following overview of the top three strategies to improve group retention.
HSAs & Retirement
The Advantages of Adding an HSA to Your Financial Strategy
Among the myriad options available to investors preparing for retirement, I believe one that might otherwise fly under the radar deserves your undivided attention: the HSA. HSAs have risen in popularity in recent years because health insurance costs continue to climb.
The Back Side of Retirement Planning
HSAs are an important retirement tool, both during the accumulation and distribution phases. People who understand the benefits that HSAs offer retirement savers in both the accumulation and - more markedly - the distribution phase will have more spendable income in retirement.
69% of Americans Aren't Planning for This Major Retirement Expense
Only 31% of Americans have a plan in place for how to pay for long-term care, according to a recent survey. If you're not part of that statistic, you'll need to start crunching some numbers -- and figuring out how you'll tackle what could be an astronomical expense.
Don't Let This $246,000 Mistake Derail Your Retirement
There are plenty of costs to prepare for in retirement, but there's an incredibly expensive one you may not even be considering right now: Long-term care. Nobody wants to think about the final years of their life before they've even retired, but because long-term care can be incredibly expensive, it's a good idea to start planning for it now.
Maximizing Your HSA
HSAs: Is the "S" Really for Saving?
HSAs were designed to allow individuals to save for current and future medical needs on a tax-efficient basis. However, they also can be part of a comprehensive savings and investment strategy, according to a report from the Defined Contribution Institutional Investment Association. The association makes three recommendations for maximizing the benefits of an HSA.
HSAs—A Tax Break Too Good to Pass Up
What’s the best tax deduction or tax break that you can claim on your taxes? Nothing beats the tax advantages of a Health Savings Account.
Consumer-Driven Health Care
How to Decide Between an HSA and an FSA
Which account is better suited to take care of your medical expenses? Learn the pros and cons in this episode of Motley Fool Answers podcast. Alison Southwick is joined by Motley Fool experts Robert Brokamp and Megan Brinsfield to answer listeners' financial and investment questions, like how to decide between an FSA and an HSA, and much more.
Survey: Consumers Don’t Grasp How Health Insurance Covers Virus
A new survey from the National Association of Insurance Commissioners shows that, overall, 47% of consumers surveyed say they don't understand what their health insurance plans will pay for when it comes to coronavirus testing and treatment. And of the respondents who have been tested or treated for coronavirus, 34% of them say they received a bill that they expected their health insurance to cover.