HSA News for December 7, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Bipartisan, Bicameral Group Unveils $908 Billion Coronavirus Proposal
A bipartisan group of more than a dozen lawmakers from the House and Senate unveiled a $908 billion coronavirus relief proposal on December 1 as leadership faces growing pressure to cut a deal. The measure comes as cases are climbing across the country and Congress is running out of time to clinch a long-stalled fifth relief bill with lawmakers scheduled to leave for the year as soon as next week.
COVID-19 Relief Picks Up Steam as McConnell, Pelosi Hold Talks
Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Mitch McConnell (R-KY) held talks on December 3 about reaching a COVID-19 relief deal before Christmas, with both expressing a desire to quickly pass legislation, according to a senior aide to Pelosi.
Congress Eyes 1-Week Stopgap Funding Bill, Longer Session to Reach Deal
Congress is weighing a week-long stopgap measure to avoid a government shutdown after current funding runs out December 11. A House Democratic leadership aide said that a one-week stopgap measure is likely as negotiators continue ironing out a full-year spending bill in which long-stalled coronavirus economic relief would be attached.
HSA Compliance Corner
Child on Your Plan Means His Expenses Are Tax-Free? Read the Fine Print!
You cover a child on your medical plan. Can you reimburse his qualified expenses tax-free from your HSA? It depends. Don't assume anything. Instead, read and file the following information.
HSA Industry News
California Association of Realtors Partners with Bend to Offer HSAs to Members
Bend Financial announced that they have been chosen by the California Association of Realtors to provide HSAs to all CAR members who select HSA-eligible HDHPs.
Industry Best Practices
Why Employers Should Offer a Financial Security Benefit for Employees
Providing a financial security benefit to accompany an employer’s high deductible plan offering can help balance attracting and retaining employees while keeping costs in check. When a financial security benefit helps employees and their family members pay for and manage their out of pocket health care expenses, it pays dividends for years to come.
The HSA Market
Report: Premiums, Deductibles Take Up Growing Portion of Workers' Incomes
Health plan premiums are taking up an increasing portion of employees' incomes, according to a new study by the Commonwealth Fund. Researchers found that premium contributions and deductibles among enrollees in employer plans increased from 9.1% of incomes a decade ago to 11.5% of incomes in 2019.
Pandemic Lowers Employer Health Care Costs for First Time in Decades
A new survey shows that because of the COVID-19 pandemic, 2020 medical claims are projected to be 5 percentage points lower than initially projected. One factor in lower health care cost trends is the deferral of non-essential care by Americans during the pandemic.
What's the Preferred Chassis for an HSA-Qualified Plan?
HSA-qualified medical plans can be designed as PPOs, HMOs, or POS plans. Which is best? It depends on several factors, including state regulations and market norms. If you have a choice, which plan makes the most sense for you as a premium payer and a patient?
HSAs & Retirement
Is a 401(k) the Best Employer-Offered Retirement Account?
It’s often said that a 401(k) is the best employer-sponsored account to help employees save for retirement. But if an employee only had $1 to save, is the gold standard of retirement savings really the best place to start? Well, maybe not. There is another way to save for retirement--a health savings account. Because its funds never expire, they can grow tax-free well into retirement, just like a 401(k).
A New Look for HSAs—Retirement Savings
HSAs have been around for more than a decade and a half, but employers and participants are only just coming to appreciate their power as an additional way to save for retirement. Employers need continued support in explaining the unique benefits of HSAs to employees. Aligning it with their retirement savings programs rather than solely as a separate health benefit can help overcome some of these barriers.
More Savers Are Taking Advantage of This Valuable Retirement Account
When we think about saving for retirement, it's easy to think of well-known accounts like IRAs and 401(k) plans. But there's another type of account you may wish to add to the mix -- an HSA. If you're not taking advantage of an HSA, it pays to rethink your long-term savings strategy.
Retirement Planning: Know These Important Ages
Planning for retirement will help ensure that you're able to enjoy your senior years to the fullest without worrying about paying the bills. Here are a few important age milestones to keep in mind. For example, you can start making catch-up contributions to your HSA in the year you turn age 55.
Maximizing Your HSA
Now Is the Time to Get Smart on HSAs
HSAs are a powerful tool that can help American workers take control of their health and financial wellness needs during these unpredictable times. However, HSAs are often misunderstood and underutilized with only 2% of people aware of the key attributes of an HSA. Now is the perfect time to take a closer look at HSAs.
HSA-Eligible Expenses in 2021
The IRS has a broad list of expenses related to medical, dental, and vision care that it considers qualified expenses. As long as you spend HSA funds on any of these IRS-approved expenses, your distributions are tax-free.
Consumer-Driven Health Care
6 Things You Need to Know About FSA/HSA—And How to Spend That Money Wisely
While choosing your level of health care and setting up your benefits, you may notice that your employer offers enrollment in an FSA or HSA. These accounts can help fill the gaps in your health insurance coverage and more. To learn the FSA and HSA meaning and learn which is best for you, keep scrolling.
Manage Your Health Benefits
The end of the year is fast approaching, but you still have time to make the most of your health care benefits. Although you have until April 15, 2021, to make a 2020 contribution to an HSA, now is a good time to plan how much you’ll stash. Round up this year’s receipts for HSA-eligible expenses and keep them in a safe place in case you decide to submit them for reimbursement down the road.