HSA News for November 16, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Supreme Court Appears Poised to Strike Down ACA's Individual Mandate While Keeping the Rest of the Law
The Supreme Court heard oral arguments on November 10 in a case that holds the entirety of the Affordable Care Act in the balance, and justices appeared likely to strike down the law's individual mandate as unconstitutional. However, some expressed significant skepticism that this provision is not severable from the remainder of the law, suggesting that there may be enough votes to retain the ACA.
Congress Deadlocked on Stimulus as Lame Duck Begins
Prospects for a new stimulus bill this year just about hit rock bottom on November 12. Democratic leaders Nancy Pelosi and Chuck Schumer said they have no plans to budge from their position of demanding a $2 trillion coronavirus relief measure, and no less. Barely an hour later, Senate Majority Leader Mitch McConnell rejected their approach in remarks to a pair of reporters.
HSA Compliance Corner
Employer HSA Contributions
What rules apply to employer HSA contributions? While employers have broad discretion in designing an employer HSA contribution strategy, they should be aware of five main considerations.
HSA Industry News
Jellyvision and HSA Bank Launch ALEX HSA to Increase Education and Savings
Jellyvision and HSA Bank announced the official launch of ALEX HSA, a new type of HSA empowering employees to make smart healthcare and savings choices year-round. ALEX HSA aims to address current challenges by pairing HSA Bank's suite of account solutions with Jellyvision's benefits education expertise.
Industry Best Practices
Help Unlock the Full Financial Potential of Health Savings Accounts
As HDHPs become more popular, knowing the opportunities provided by an HSA can help benefit employees and employers alike. With its more affordable premiums, an HDHP can help businesses and their employees take greater control of healthcare costs. It also can provide a viable option for many small employers that couldn’t otherwise afford to offer health benefits for their employees.
The HSA Market
Employees Still Perplexed by HSA Plans During Open Enrollment
Employees often don't know how to use HSAs and the high-deductible health plans the accounts are coupled with. This leads some to bypass an HSA option during their employer's annual open-enrollment period, while others who enroll in HSA-eligible plans often fail to take full advantage of them.
HSAs & Retirement
3 Reasons You Need to Save for Retirement
A big reason so many seniors wind up miserable is that they don't save adequately for retirement ahead of time. Seniors tend to have more health problems than younger people, so it may not surprise you to read that your medical costs are likely to rise during retirement.
66% of Retirees Spend This Much on Health Care
About two-thirds of retirees spend more than $375 a month on health care costs, a recent survey found. That amount is equivalent to roughly one-quarter of the average Social Security benefit. In addition, 31% of retirees surveyed spend more than $1,000 monthly on health costs, which is about two-thirds of the average Social Security benefit.
Unlock a Secret “Spillover” Retirement Strategy With HSAs
If your health insurance plan includes them, you can use an HSA as a “spillover” retirement plan. As with IRAs or 401(k) plans, any money you put into an HSA gives you an immediate tax deduction. A dollar invested in an HSA lowers your taxable income by a dollar. And you can take cash out of an HSA at any time tax- and penalty-free if you use it to pay for qualifying medical expenses.
Maximizing Your HSA
Five Things You May Not Know About HSAs
Many employees still don't understand HSAs. Or they confuse them with Health FSAs. And as a result, they don't take advantage of an important opportunity to manage out-of-pocket costs, reduce taxable income, and build a "peace of mind" account to pay an unexpected expense. Here are five common misconceptions. Make sure you understand these concepts as you select your coverage options.
I Use My Health Insurance Plan to Save for Retirement Instead of Paying Medical Bills, and It's One of the Smartest Financial Choices I've Made
I feel a HDHP offers me more benefits than drawbacks, especially when it comes to something that you don't usually associate with health insurance: investing money for long-term growth. The other major advantage? Access to a health savings account.
Consumer-Driven Health Care
Smart Money Podcast: Open Enrollment and HSA vs. FSA
During open enrollment, many employers offer workers a choice between an FSA and an HSA. Both accounts allow you to put aside pre-tax money for health care, typically with deductions from every paycheck, but they differ in some important ways. Figuring out the best option depends on a number of factors, so spend some time researching your options.
Medical Tourism Craters During Coronavirus Pandemic, Hospitals Lose Billions
For decades, millions of Americans have traveled abroad for medical care. Medical tourism has been on the rise domestically, too, but the coronavirus pandemic has hit medical tourism hard. The recent Covid-19 surges will not help.