HSA News for February 3, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Appeals Court Refuses to Reconsider Ruling Striking Down Obamacare Mandate
A federal appeals court voted against rehearing a legal challenge to Obamacare after a three-judge panel struck down the health care law's individual mandate. Neither party in the lawsuit had asked the circuit court to rehear the case. A coalition of blue states has already appealed to the Supreme Court, which is currently deciding whether to take it up.
Poll: Narrow Majority Favors 'Medicare for All'
A narrow majority of Americans favors a national “Medicare for All” health plan, according to a new poll, but even more like a public option. The poll found that 56 percent of respondents said they want Medicare for All, while 68 percent said they favored a public option that competes alongside private insurance.
House Leader Aims for Surprise Billing Deal by Presidents Day
House Majority Leader Steny Hoyer (D-MD) wants the House to move on legislation banning balance billing as soon as mid-February, he told reporters on January 28. But some are skeptical House leaders can work out their differences that quickly because the House Energy & Commerce and Ways & Means committees have been at odds over the best approach to address payment for surprise medical bills.
HSA Studies & Analysis
What’s Holding Back HSAs?
Why, more than 15 years after its introduction, despite “triple tax” advantages and growing concerns about health care expenses in retirement, aren’t there more HSAs? That’s the focus of a new whitepaper sponsored by the Empower Institute. Many employers still regard the HSA as a new, untested innovation.
HSA Compliance Corner
Not Covered by Your Spouse’s Health FSA? Think Again!
You want to enroll in your employer’s HSA program. You’re not enrolled in the company’s general Health FSA plan. Your wife participates in her company’s Health FSA. Her benefits choice just disqualified you from making or receiving HSA contributions. Is the statement above news to you? It is to many people.
Tax-Free HSA Distributions to Pay for My Daughter’s Wedding?
Wedding expenses don’t meet the definition of qualified withdrawals from an HSA. Can an owner distribute funds tax- and penalty-free for this expense? As long as the total amount of the distribution is less than or equal to the total dollar value of the receipts for qualified but not previously reimbursed expenses, I’m in compliance with federal tax law.
HSA Industry News
Devenir Partners with Centers for Medicare & Medicaid Services
Devenir has partnered with the Centers for Medicare & Medicaid Services to supply a powerful HSA provider search tool and comparison resource through Healthcare.gov. Consumers can look for and compare HSA providers when they are purchasing HSA-qualified plans on state insurance exchanges.
HSA Best Practices
How HSAs Can Help Boost Employee Productivity and Retirement Readiness
As employees struggle to effectively prepare for retirement, employers are also paying the cost due to reduced productivity and increased employee absences. Luckily, employers have a powerful tool at their disposal to help them address these issues and give their employees peace of mind—HSAs.
The HSA Market
Connecticut Task Force Studying HDHPs Struggles to Find Consensus
Health insurers and medical providers can’t seem to find much to agree on when it comes to alleviating the symptoms and root causes of HDHPs. The state's HDHP Task Force’s deadline to issue recommendations to lawmakers looms, but it was unclear this week what might remain in the final report. There was disagreement over many of the proposals in the draft report when members met January 28.
HSAs & Retirement
Less Than 16% of Americans Are Taking Advantage of This Retirement Saving Secret Weapon
Only 16% of workers in their 40s are using an HSA to prepare for retirement, according to a recent survey, and that percentage is even smaller among other age groups. However, this type of account is a powerful tool to have in your retirement planning toolbox, with several perks worth taking advantage of.
10 Reasons HSAs Don’t Play a Major Role in Retirement Planning - Yet
HSAs could be a big help when it comes to setting aside money for retirement, but despite the length of time that HSAs have been around, they still don’t draw substantial assets from most account owners, nor do they generally get used in a way that would pay off in retirement. Here are ten reasons why.
Help Clients Predict Health Care Expenses in Retirement
The personalized, interactive financial planning tools for giving clients a more accurate picture of how much they would need to pay for health care in retirement — and enabling them to begin making progress as part of a comprehensive, holistic financial plan — are no longer the stuff of science fiction.
Here’s Why Dropping Medicare for Employer Coverage May Come With Snags
For retirees on Medicare who head back to work, the move could provide the option of employer-based health insurance. And given the various costs associated with Medicare, the employer’s plan might be cheaper. Yet before you drop parts of Medicare with the idea of picking them up down the road, be aware that there could be snags.
Maximizing Your HSA
96% of HSA Savers Aren’t Taking Advantage of Its Secret Perks
One of the most powerful savings devices for those pursuing financial independence retire early (FIRE) strategies has become the HSA. It turns out that most people never see the contributions within an HSA grow, because that growth never occurs if you use the money for health related expenses before the funds rise. It turns out, that’s exactly what’s happening to HSAs.
Consumer-Driven Health Care
If You Have Insurance, You Shouldn’t Be Paying Full Price for Insulin
It’s a new year, and Americans are starting over on their health insurance deductibles. That means many people with diabetes and other chronic conditions once again face unaffordable out-of-pocket costs for the medicines they need. But they shouldn’t have to. Employers can now take advantage of new rules for HDHPs, as well as other programs, to make sure no one needing insulin pays full price.
CVS to Offer Diabetes Drugs at No Out-of-Pocket Costs for PBM Members
CVS Health Corp said on January 29 that its pharmacy benefit management (PBM) unit is launching a new program, under which employers and insurers will be able to offer diabetes drugs, including insulin, at no out-of-pocket costs to their members. The company said the program would not raise costs for health insurers and employers, and would ensure better adherence to drug regimens by diabetic patients.
Starting From $0: Help Employees Minimize Health Costs Pre-Deductible
For many people, January is the proverbial “reset button” on meeting your deductible. Given that a growing number of Americans are enrolled in high-deductible plans, the stress of meeting deductibles is real. So we thought this would be a good time to share some ideas that could help employees better manage out-of-pocket expenses.
The Deductible Reset: How to Help Patients Navigate It
The changing of the calendar year is traditionally associated with health-related resolutions, but it has recently become coupled with a new healthcare phenomenon with potential for influencing the ability to deliver care: the “deductible reset.” At the same time, the deductible reset period may offer providers a new opportunity to strengthen the doctor-patient relationship.