HSA News for October 19, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
McConnell Shoots Down $1.8 Trillion Coronavirus Deal, Breaking With Trump
Senate Majority Leader Mitch McConnell (R-KY) shot down the prospect of a coronavirus deal totaling between $1.8 trillion and $2.2 trillion — the goalposts of the current talks between Democrats and the White House.
McConnell Details $500 Billion COVID-19 Bill Set for Wednesday Vote
The Senate will vote on a $500 billion GOP coronavirus relief bill on Wednesday, Senate Majority Leader Mitch McConnell (R-KY) announced on October 17. McConnell will require Democratic help to get the 60 votes needed to pass the bill in the Senate. Democrats previously blocked a similar bill and are expected to do the same to the new GOP proposal.
HSA Studies & Analysis
2020 Top HSA Plan Providers Evaluated
Morningstar is out with its annual assessment of the most prominent HSAs available to individuals. Overall, the study found that HSA providers improved in quality over the last year, with a number of plans cutting fees, enhancing the design of their investment menus, and lowering investment thresholds.
HSA Compliance Corner
ICHRAs and HSAs? A Great Combo, but Beware This Potential Trap
A growing number of employers are considering a new program to provide for employees' medical coverage rather than providing the coverage through an employer-sponsored plan. If your employer offers this option at your next open enrollment, be sure you understand how the design of the program can affect your eligibility to open and fund a HSA.
HSA Industry News
HSA Bank Launches “Safety Net to Nest Egg” Campaign to Mark National HSA Awareness Day
HSA Bank announced the debut of its comprehensive marketing and educational campaign, "Safety Net to Nest Egg," as part of HSA Day on October 15. The campaign will include educational content across HSA Bank's website and social media. HSA Bank is also partnering with Clever Girl Finance to further empower women to achieve real financial success.
Alegeus Survey: Consumers Primed for HSA Education
According to a new survey from Alegeus, people are thinking about their healthcare more than ever, making now the ideal time to fill in knowledge gaps on HSAs, health plans and more. However, two-thirds of HSA account holders said they wouldn’t have enough funds in their account to cover an emergency, and another 18% don’t have enough to cover an ER visit or a surprise medical bill.
Industry Best Practices
HSA Education: Employer Actions Matter
When educating employees about HSAs, employers need to think about their unique employee population and anticipate what information might need clarifying. Details can make a difference, such as pointing out how different demographics and generations can use an HSA, how an HSA is more flexible compared to an FSA, and how the HSA funds belong to the employee even if they are laid off or leave the job.
The HSA Market
Five Facts as HSA Day Approaches
What's the state of the Health Savings Account Market after nearly 17 years? Strong. Very strong. Let's put HSAs into context as they approach their Sweet 16th birthday. Here are five important contexts to know and appreciate.
FedEx Employee Health Plan: Contribution Increases, HSA Option Among Changes for 2021
FedEx employees will see several benefit changes looming as the COVID-19 pandemic shakes up the health care landscape. FedEx employees will have an HSA option for the first time, and the company’s HRA option is still available.
Navigating New Health Plan Options During Open Enrollment
Health plans are undergoing a revolution as new employee-centric health plans emerge to challenge traditional group health plans. Conventional plans have been proven to be inefficient at best and imposes excessive costs on businesses. HRAs, HSAs, and FSAs have emerged to provide employees with greater control over their healthcare while offering significant tax advantages.
Health Benefits Transformation
Combining HSAs with individual-coverage HRAs will maximize employees’ choices and give them more control over their current and future health care and coverage needs. Individual-coverage HRAs, combined with HSAs, have the potential to be as transformative for health care as the 401k option has been over the last several decades for employee retirement benefits.
HSAs & Retirement
60% of Medicare Enrollees Worry About Healthcare Costs. Here's the Best Way to Pay For Them in Retirement
Many seniors live on a fixed income and tight budget, relying heavily on their Social Security benefits to make ends meet. It's not surprising to learn that 60% of seniors 65 and older who are enrolled in Medicare worry about their ability to afford healthcare. In fact, 50% of people in that age group fear that a major personal health crisis could lead to serious debt or even bankruptcy.
Use Your HSA to Pay for Medicare Premiums
In some ways using an HSA for retirement can have advantages over using an IRA in retirement. The biggest advantage is that distributions coming from an HSA to pay for qualified medical expenses are income-tax free. And even though qualified medical expenses do not generally include health insurance premiums, there is an exception for paying Medicare premiums after the HSA owner reaches age 65.
4 Ways to Get Tax-Free Income in Retirement
Many retirees are surprised to learn that they will pay taxes in retirement on that income, and usually that tax burden rises as you get older. Being tax-smart in retirement can make a huge difference in your lifestyle after you stop working. Here are four ways to generate tax-free income after retirement.
What the Coronavirus Means for the Future of Financial Planning
The coronavirus pandemic has had sudden and significant repercussions for how individuals conduct their financial planning. Financial advisors can assist clients who have multiple options for employer-provided coverage in identifying the best plan for their needs, including helping people who are covered by HDHPs utilize and maximize their HSA contributions.
Maximizing Your HSA
Health Care Savings Accounts Possible Solution to High-Deductible Plans
If you have a high-deductible health care plan on your own as a business owner or through your employer, then you should immediately begin a health savings account, if your plan is eligible, or a regular savings account if not. Decide how quickly you should and reasonably can fund your HSA.
How to Maximize Tax Savings from Workplace Perks at Benefits Enrollment Time
After one of the most difficult and financially stressful years for many Americans, digging back into the details of workplace benefits like HSAs and FSAs is probably the last thing you want to do. Overcome that fatigue and get to it.
What Is a Health Savings Account?
Offering a competitive employee benefits package with comprehensive healthcare options is a great way to attract and retain top talent. Many businesses choose to offer supplemental healthcare savings options, like an HSA. HSAs are not mandatory, but they are desirable because they allow employees to save generally tax-free money for eligible healthcare expenses.
FSA vs. HSA — What’s the Difference and How to Choose?
It’s time to start thinking about what health benefits you’re going to enroll in for the upcoming year. To help you make an informed decision, we’re taking a look at the benefits and differences between FSAs and HSAs. While both of these accounts offer tax advantages, there are a few key differences between the two that you’ll need to know.
Consumer-Driven Health Care
Don’t Overlook These Employee Benefits That Can Help You Save Money
Open enrollment season is approaching, giving many Americans an opportunity to sit down and go over their employer-sponsored workplace benefits for next year. If you’re not sure what your employer offers, or want to learn more about your particular plan, there are a few places you can turn to for help.
Despite a Bumpy Road Ahead, Incremental Progress on Price Transparency
Last month’s Rand Corporation report on the prices paid for inpatient and outpatient services to more than 3,000 US hospitals in 49 states is the latest salvo in an escalating battle to reduce health care spending through transparent pricing and greater market competition.
What Does Insulin Cost and What's Behind the Skyrocketing Prices?
Insulin prices in the United States have tripled over the past decade. Patients are now paying double the amount in out-of-pocket costs. Experts say that it remains to be seen whether executive orders will change the price of insulin. Currently, there are drug-makers that rule the market on insulin—an issue that has driven cost.