HSA News for November 2, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Lawmakers Hope Election Releases Pressure on Stimulus Talks
Lawmakers in both parties see a deal on a new coronavirus relief package as more likely in the lame-duck session, once the political pressures of the 2020 elections have abated.
McConnell Says Congress Will Take Up Stimulus Package at Start of 2021
Senate Majority Leader Mitch McConnell (R-KY) says he expects Congress to move another coronavirus relief package “right at the beginning” of 2021, breaking from Speaker Nancy Pelosi (D-CA), who told reporters on October 29 that she wants to get a deal in the lame-duck session.
Senate Confirms Trump Supreme Court Pick to Succeed Ginsburg
The Senate confirmed Judge Amy Coney Barrett to the Supreme Court on October 26, providing President Trump with a last-minute political victory before election day. The 52-48 Senate vote on Barrett's nomination capped off a rare presidential election year Supreme Court fight sparked by the death of Justice Ruth Bader Ginsburg on September 18.
New Trump Policy Will Force Insurers to Disclose Prices Up Front
Health insurers will be required to publicly post, in advance, the price for the most common services and procedures, under a rule finalized by the Trump administration on October 29. The final rule is an effort to inject transparency into the opaque health care sector.
HSA Compliance Corner
Can an HSA-Qualified Plan Have an Embedded Deductible? Yes, But . . .
It's a common misnomer that HSA-qualified plans can't have an embedded deductible. But they can, if they're designed correctly. If the description of how the deductible works isn't painfully clear in the schedule of benefits, contact the insurer to make sure you know exactly what you're buying.
HSA Crash Course: Rules, Regulations and Tax Issues
The first day of the 2020 PLANSPONSOR HSA Conference featured a detailed panel discussion about the rules and regulations impacting the provision and operation of HSAs. The speakers took time to dive into the heart of HSA regulations and did not shy away from the highly technical aspects of HSA management and optimization.
HSA Industry News
Health Karma Teams Up With Lively to Offer a Modern HSA
MediXall Group Inc., owner of the Health Karma™ platform, announced a new partnership with Lively that will deliver a much needed upgrade to HSAs by pairing Lively's tax-free savings account and technology with Health Karma’s personalized technology that makes healthcare and benefits easy to understand.
Machine Learning HSA Personas Reveal Industry's Over-Generalization of Consumer Needs
Lively, Inc. released its first HSA Persona Report, giving a view into how consumers are using their HSA funds. Findings show that the industry’s perception of the average HSA holder is vastly misunderstood, as a majority of people who use HSAs have just $1,050 in assets and are primarily motivated to save in case of unexpected healthcare costs instead of using HSAs for their long-term benefits.
The HSA Market
HSAs Present a Working Free Market Alternative to Obamacare
The fastest, simplest and most impactful way to improve both costs and outcomes in health care is via letting Americans make better choices with their own health care dollars. First and foremost, this means getting rid of the long-obsolete piece of law that requires HSAs to be connected to owning high-deductible health plans.
Pandemic Slows Growth in Health Benefit Accounts
A new market forecast for health benefit accounts looks at the economic uncertainty created by the COVID-19 pandemic and finds that although growth trends have slowed for plans like HRAs and FSAs, there may be opportunities opening up with new models of health benefit accounts.
HSAs & Retirement
The Relationship Between Retirement Plans and HSAs
Industry experts examined the relationship between HSAs and retirement planning during the first day of the 2020 PLANSPONSOR HSA Conference. As retirement plans and other benefits become more complex, more employers are inquiring about HSAs and how they play a role in retirement savings.
The Critical Role of HSAs in Helping People Prepare for Retirement
Experts say it is important to encourage health savings account holders to invest their money, as doing so increases their balances four-fold. Three ways people can do a better job of preparing for health care costs in retirement are by opening an HSA, taking out long-term care insurance and educating themselves about medical costs in retirement.
Maximizing Your HSA
Reasons to Sign Up for a Health Savings Account
If you’re eligible for an HSA, now may be a good time to open one. The federal pandemic relief program has made tax-favored HSAs even more useful. Money in the accounts can now be used to pay for a variety of everyday items. Money in the account can also be invested, acting as a sort of 401(k) for health needs in the future.
Should You Roll Over an IRA to an HSA?
The tax law lets you make a one-time rollover from an IRA to an HSA, transforming the tax-deferred retirement savings into an account you can tap tax-free. But the law is limited, and you need to follow a specific procedure to avoid an unexpected tax bill. Here's what you need to know.
Stretch Those HSA Dollars
I never realized that my HSA funds covered dental work performed outside of the United States. So, the purpose of this article is to share my dental tourism experience in Mexico and to demonstrate how you can really maximize your HSA dollars.
Consumer-Driven Health Care
The New Healthcare Transparency Rule and What it Means for HSAs
The Transparency in Coverage final rule was released on October 29 by the Departments of Health and Human Services, Labor, and Treasury. It cements President Trump’s executive order price and quality healthcare transparency, which he signed in the summer of 2019. What does the rule mean, and how specifically does it affect things like high-deductible plans and HSAs?
High Deductibles Not Sufficient to Change Employee Behavior: EBRI
High-deductible health plans might help make members more selective early in their plan year, but once they meet that deductible, all bets are off according to a new report. The likelihood of using low-value health services increases by as much as 83% once plan members meet their deductible. That includes services like cancer screenings below recommended ages, imaging for uncomplicated headaches, etc.