HSA News for February 17, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Trump FY 2021 Budget Expands HSAs to Working Seniors
President Trump’s Fiscal Year 2021 budget calls for expanding tax advantaged HSAs by allowing working seniors eligible for Medicare to continue using their account. Under current law, workers who are Medicare eligible are not allowed to contribute to an HSA even if they have an HSA qualified plan. The budget fixes this needless restriction.
House Panel Advances Bipartisan Surprise Billing Legislation Despite Divisions
The House Education and Labor Committee approved a bill to protect patients from massive “surprise” medical bills, sending the measure to the full House. But competing proposals must be reconciled before the chamber can vote on the issue, which is a rare area of possible bipartisan action this year.
Gardner Bill Helps Seniors Afford Cost of Homecare
On February 10, Sen. Cory Gardner (R-CO) introduced bipartisan legislation (S. 3261) to help seniors pay for everyday homecare. The bill would allow individuals over the age of 65 to use qualified distributions from HSAs for certain qualified homecare expenses, including assistance with eating, bathing, dressing and taking medication.
Insurers Counter CMS Transparency Rule with Price Estimator Initiative
Hoping to deflect the Trump administration's proposed price transparency rule, the Alliance of Community Health Plans is calling for expanding and certifying voluntary price estimator tools offered by health plans. While many health plans and some hospitals already offer price estimators, there isn't a certification process in place.
HSA Compliance Corner
ICHRAs and HSAs
Now that employers can offer Individual Coverage HRAs and the first pioneers have implemented their programs, a growing number of companies and benefits advisors are exploring this approach in more depth. There are many questions around compliance. First, we'll focus on ICHRAs and their interaction with HSAs.
HSA Best Practices
4 Factors Impacting HSA Menu Size Decisions
The case for limiting the number of funds on an HSA investment menu often stems from research in retirement plans. However, we believe HSAs aren’t subject to some of the limitations of retirement plans as a result of several key factors associated with the HSA marketplace.
HSAs & Retirement
Most Seniors Are Overlooking This Key Retirement Option
An HSA is one of the best ways to shore up finances during your golden years. Yet, just a tiny percentage of seniors make use of these accounts. The numbers aren’t much better for folks approaching their senior years. A scanty 16% of folks in their 40s and 15% in their 50s have HSAs, according to the survey. Why is this a big deal? Because HSAs offer advantages that are unique among retirement savings accounts.
How to Use an HSA as a Retirement Account
An HSA can be a powerful tool to supplement your retirement savings, especially as health care costs rise. Remember these are funds that are sheltered from taxation for the most part, and that alone can lead to some major savings. Here are some of the benefits of having this type of account.
Older Adults Are Missing Out on This Valuable Retirement Savings Tool
IRAs and 401(k)s are often what comes to mind when you think about retirement savings accounts, but there's actually a third option a lot of people tend to overlook: an HSA. While it was originally created to help people pay for their medical expenses, the tax breaks it offers make it a smart place to stash some extra money for your retirement, too.
IRA vs. HSA: Which Works Best for Your Retirement Investing?
The most common non-pension-related practice while saving for retirement typically involves a 401(k) and an IRA, but an HSA could be a great supplement and may actually provide more benefits to certain savers than an IRA. Let’s take a closer look at how IRAs and HSAs work, and the pros and cons of using one over another.
This Could Be the Most Important Retirement Savings Vehicle for 2020
Instead of using an IRA to cover health care costs in retirement, advisers and clients alike should be thinking about HSAs. These accounts can help stretch retirement savings farther and build a more bulletproof financial plan.
Two Items Buried in Trump’s Budget Call for Big Changes to Medicare
About 115 pages into President Trump’s proposed 2021 budget are two line items that Medicare beneficiaries might want to take note of. The budget includes changes that would make it easier for older Americans to opt out of Medicare as well as to put money in tax-advantaged accounts earmarked for health-care costs.
Maximizing Your HSA
This 1 Savings Tool Offers 3 Different Tax Breaks
If your goal is to save money in a tax-advantaged fashion, you have several options at your disposal. You can put money into a traditional IRA or 401(k) or you can fund a Roth IRA or 401(k) and benefit from tax-free withdrawals in retirement. But if you're looking for a savings option that offers the maximum tax value, you may want to consider an HSA.
HSAs Offer Path to Tax Deduction
At tax time, investors often rush to get money into their IRAs. But Morningstar's Christine Benz says there's another tax shelter vehicle worthy of consideration, and that's a health savings account. She's here today to discuss some considerations when funding an HSA.
Consumer-Driven Health Care
Surprise Surgery Bills Happen Even When Patients Plan Ahead
One in five patients who get elective surgery at U.S. hospitals that accept their insurance may still get surprise medical bills, especially if they receive anesthesia, a new study suggests. Even among those who did their best to go where their insurance was accepted, 21% still got surprised by out-of-network bills. And tabs were not small, averaging more than $2,000.
Expand Pre-Deductible Coverage Without Increasing Premiums or Deductibles
Although deductibles are entrenched in the American healthcare landscape, innovative, cost-neutral plan designs that cover more essential services on a pre-deductible basis, while decreasing exposure to and spending on harmful care, would better meet the clinical and financial needs of millions of Americans.