HSA News for December 14, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Trump Signs One-Week Funding Bill to Avoid Shutdown
President Trump signed a short-term funding bill on Friday evening to keep the government open for another week while lawmakers negotiate a longer-term package. With Trump's signature, the funding deadline to keep the government open now moves to the end of the day on December 18.
Window Quickly Closing for Big Coronavirus Deal
Congress is quickly running out of time to cut a year-end deal on a big coronavirus relief package. Lawmakers have been holding talks for weeks but are struggling to close the gap on the biggest issues. There’s now growing skepticism about the prospects for a sweeping agreement. With the clock ticking, lawmakers are warning there are too many moving parts and too many competing factions.
Committees Reach Bipartisan Deal to Protect Patients from Surprise Medical Bills
Four congressional committees on reached a bipartisan deal on legislation to protect patients from massive "surprise" medical bills after a series of tense negotiations. Backers of the deal are hoping to include it in the year-end spending package slated to go through Congress next week.
Agencies Finalize Rule to Give More Flexibility to ACA Grandfathered Plans
The Trump administration finalized a rule that lets grandfathered group health plans raise cost-sharing requirements such as deductibles without losing their grandfather status. The rule will ensure that beneficiaries can continue to contribute to a health savings account.
HSA Studies & Analysis
There Are Crucial Differences in How Working Families Think About and Use HSAs, HealthEquity Survey Finds
Results of a new survey by HealthEquity indicate that while HSAs are an important way working families and other employees manage financial issues with their health care, many still encounter roadblocks and potential misunderstandings that limit their progress. Employers and other organizations have an opportunity to help change that.
Employee vs. Individual HSA Contributions
Twice a year, Devenir releases findings from our semi-annual HSA research report. Over the last three years, employer associated HSAs have seen the highest average contributions. However, over the same period, we have seen individuals’ average contributions growing faster.
HSA Compliance Corner
Owners, Partners Can't Participate in an HSA Program? Read the Fine Print!
Certain business owners face restrictions on certain elements of their participation in a Health Savings Account program. But that doesn't mean that they can't enjoy nearly all the benefits of the program on their own.
HSAs and Family Members
How do the HSA eligibility, contribution, and distribution rules apply to an employee with a family? HSA-eligible employees with at least one other family member covered under the HDHP will be able to contribute up to the family limit, but they should be aware of potential eligibility and distribution pitfalls.
The HSA Market
Ignoring Inequitable Benefit Design Is Not an Option
The heightened focus on racial disparities has made employers think more about their diversity, equity and inclusion practices. Only a small minority of employers offer an equitable benefits design, where lower-wage individuals pay less for health care. It’s time for that to change.
HSAs & Retirement
Why Your Healthcare Costs as a Senior Could Be Higher Than Planned
When you're thinking about how you'll spend your money as a retiree, chances are good that one of the biggest expenses isn't even on your radar. It's the cost of healthcare. Why are so few people preparing for medical costs as they age? One big reason is that far too many pre-retirees don't understand some basic facts about Medicare.
How Much Will Healthcare Cost in Retirement? The Answer May Shock You.
Retirees commonly expect their living costs to go down once they're no longer working, but many seniors are shocked to discover that retirement is a more expensive prospect than anticipated. And a big part of the reason boils down to healthcare. Healthcare is the one expense that tends to rise for seniors, and there are a few reasons for that.
Maxed Out Your Retirement Plan? Here's Another Way to Build Long-Term Wealth
If you still have the financial leeway to sock money away for the future, there's one account in particular that, believe it or not, offers superior tax benefits on the road to building long-term wealth: a health savings account. If you qualify to contribute to one, it pays to take advantage.
Even Better than Roth IRA? HSA Is Best Retirement Tool
While the Roth IRA has long been touted as the best retirement vehicle available, I would argue that something is slightly better. And that would be the HSA. HSAs are the only accounts that offer the "triple tax advantage" of tax-free contributions, tax-free growth, and tax-free withdrawals for qualified expenses. Roth IRAs allow for tax-free growth and withdrawals, but contributions are taxable.
Maximizing Your HSA
How to Hack Your HSA to Capitalize on Its Tax Advantages
It’s easy to ignore what we don’t understand – including something like an HSA. But plenty of professionals leave money on the table by not making the most of these tax-advantaged accounts.
3 Alternative Ways Clients Can Use an HSA
HSAs are far more versatile than they get credit for. In addition to helping people pay current medical bills and saving for health care expenses in retirement, HSAs can help people pay Medicare or COBRA premiums, long-term care insurance premiums and expenses, and non-medical expenses.
How to Invest Your HSA Funds
Did you know that you can invest your HSA funds? HSA investments can grow your money at a higher rate and help you save toward more long-term goals like retirement. Plus, HSAs are a rare triple-threat in tax benefits which makes it an ideal savings and investment vehicle throughout your lifetime.
What to Do with That "Abandoned" Health Savings Account?
You have a Health Savings Account to which you have contributed in the past, but now you've changed jobs or coverage and are no longer eligible to contribute. What can you do with the balance? Here are your options.
Health Plan Perk: No Taxes, Ever — a Roth IRA on Steroids!
Most federal workers and retirees pay health insurance premiums to one of the many plans in the Federal Employees Health Benefits Program. But a growing number of people now have their health plans paying them. HSAs are offered by a growing number of FEHBP plans. Open season ends December 14, so there is still time to figure if this is the time to consider an HSA.
Consumer-Driven Health Care
How to Beat the High Cost of Diabetes Care
Insulin and other drugs, plus test strips and supplies, can cost hundreds of dollars a month. Here are ways to save.
Walgreens to Launch 40 Primary Care Clinics by 3rd Quarter of Next Year
Walgreens plans to open 40 on-site primary care clinics by the third quarter of 2021. The clinics will be operated as part of an agreement with VillageMD, which is providing medical personnel to staff the sites. The openings are part of Walgreens' long-term plan to open as many as 700 primary care clinics in more than 30 U.S. cities and metropolitan areas over the next five years.