HSA News for November 9, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Fight for Senate Majority Boils Down to Georgia
Control of the Senate is boiling down to Georgia, likely dragging the fight for the majority out until early January. Democrats are pinning their hopes on being able to force a 50-50 Senate on a narrow, uphill path that requires them to win both seats in the typically red state. A 50-50 margin would hand Democrats the majority because Vice President Kamala Harris could break a tie.
Washington Braces for Unpredictable Post-Election Period
President Trump’s time left in office is ticking down after Democrat Joe Biden was projected as the president-elect on Saturday, setting the stage for an unpredictable lame-duck period. What happens in the roughly 70 days until Inauguration Day remains uncertain, even to many people close to the White House and the Trump campaign.
Election Scrambles Prospects for Next COVID-19 Relief Bill
The election results, both known and unknown, have scrambled the prospects for a new coronavirus relief bill after months of negotiations. With next year's Senate majority in limbo until January, Republican and Democratic leaders in Congress are preparing for outcomes in which they could gain or lose leverage in any COVID-19 talks.
A Biden Win and Republican Senate Might Lead to Gridlock on Health Issues
Without a Democratic majority in the Senate, Biden as president could not likely advance many of his top health agenda items — including lowering the eligibility age for Medicare to 60, expanding financial assistance for health insurance under the Affordable Care Act, and creating a “public option” government health plan.
HSA Studies & Analysis
Underinsurance Is Growing, but HSAs Aren't Keeping Up: Study
High deductible health plans have become much more common among all racial/ethnic and income groups, but the health savings accounts that make these plans potentially workable are far less common among Black, Hispanic, and lower-income enrollees--and the gap is growing. [NOTE: The study uses a very different definition of "health savings account" in this study.]
HSA Compliance Corner
New Enrollees Must Pro-Rate Their Contributions? Nope. It's an Option.
HSA contributions limits are tracked on the calendar year, regardless of when you enroll in HSA-qualified coverage or become eligible to fund an account. That timing often doesn't align with people's lives. Situations like new jobs, and life events can lead to someone's becoming eligible to fund an account after January 1. How do these situations affect their maximum contribution?
The HSA Market
Decoupling: What Is It, and How Could It Reshape American Health Care?
“Decoupling” means removing the requirement to have a high-deductible health plan as a prerequisite for having an HSA. HSAs should be decoupled from HDHPs and available to any American with health insurance.
HSAs & Retirement
48% of Retirees Aren't Tracking This Major Retirement Expense
According to a recent study from insurance company Allianz Life, nearly half of retirees aren't tracking what they spend on healthcare. Given that healthcare stands to be a retiree's largest expense, flying blind in this area of one's budget could be a disastrous move.
Maximizing Your HSA
5 HSA Benefits You Might Not Know About
HSAs can help you take control of your health and financial wellness needs in today’s unpredictable world. Not sure how they work? Here are five facts to help break down what you need to know about HSAs. And with open enrollment season underway for many American workers, now is a good time to get educated on HSAs as you consider all your employer-sponsored workplace benefits.
Investing Your HSA Money
One important choice that Americans have related to their health and their money is whether to set up an HSA. HSAs can also be attractive investment vehicles, but investing in HSA funds isn't for everyone. Here's what you need to know about the ins and outs of investing HSA money to be able to make the best decision for your personal situation.
Should You Take Non-Qualified Withdrawals When the Penalty Ends?
The 20% additional tax for non-qualified distributions from an HSA no longer applies once you reach age 65. Does that mean that senior citizens should begin to withdraw their funds for expenses other than health care? No. They still penalize themselves financially when they make withdrawals for non-qualified expenses, even if the 20% additional tax no longer applies.
Consumer-Driven Health Care
I'm a Financial Planner, and There Are 4 Steps I Take Every Year to Decide Which Health Insurance Plan to Choose During Open Enrollment
A thorough comparison of health care plans is difficult to do. So, I try to keep things simple and follow Nobel Prize-winning behavioral economist Richard Thaler's approach. First, evaluate each plan option on premiums alone. Next, clear the high-deductible hurdle. Repeat, factoring in the out-of-pocket maximum. Finally, take advantage of an HSA or FSA if they are offered to pay health expenses with pre-tax dollars.
HSA, FSA or HRA: What Employees Need to Know Before Choosing One
Not to be confused with health insurance, HSAs, FSAs, and HRAs are tax-favored accounts that reimburse employees for eligible healthcare expenses. All three share the common goal of helping employees save on healthcare costs, but in the end, they are separate accounts. Here’s what you need to know before enrolling in an employer’s HSA, FSA, or HRA.
How to Expand Health Care Choice and Access
Expanding HSAs so that Americans can pay for their health care tax free through the pandemic is one way that policymakers can achieve these goals. Not only will this cut taxes and improve health care for Americans, but there is strong bipartisan support for this policy, as new polling data confirms.
A New Item on Your Medical Bill: The ‘Covid’ Fee
The coronavirus pandemic has made the practice of health care more costly as providers must wear protective gear and sanitize equipment more often, even as they face declining revenue. To address this financial shortfall, some health providers are turning directly to patients. Surprise “Covid” and “PPE” fees have turned up across the country.
The Best Places to Get Glasses Online
You can thank the digital age for making it even more convenient to shop for a new pair of glasses. Some of the best places to buy glasses online stock a vast selection of cool frames, and they’ll even help you find the right silhouette and fit for your head size, face shape, and style. And some companies accept payments from FSAs and HSAs.