HSA News for March 16, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Trump Declares National Emergency Over Coronavirus
On March 13, President Trump declared a national emergency over the coronavirus, freeing up additional resources and funding as federal, state and local governments attempt to combat the rapidly spreading disease.
House Passes Bill to Help Prop Up Economy from Coronavirus
The House of Representatives passed legislation aimed at mitigating the economic impact of the coronavirus by providing financial assistance to people impacted by the pandemic. The measure includes provisions that would ensure that workers can take paid sick or family leave, bolster unemployment insurance, and guarantee that all Americans can get free diagnostic testing for the coronavirus.
HSA-Qualified Plans May Waive Cost-Sharing for Coronavirus Tests
The IRS released guidance on March 11 that confirms that employers and insurers may waive out-of-pocket costs for coronavirus testing and treatment for workers enrolled in HSA-qualified plans. The guidance states that HSA-qualified plans will not lose their status if they provide medical care services and items related to the testing or treatment of the coronavirus below the deductible.
AMA Releases New CPT Code & Description for COVID-19 Testing
A new CPT code has been created that streamlines novel coronavirus testing offered by hospitals, health systems and laboratories in the U.S. The code is effective March 13, 2020 for use as the industry standard for reporting of novel coronavirus tests across the nation’s health care system.
White House Says Has Sent 'Principles' for Drug Pricing Reform to Congress
President Trump has sent “principles” for drug pricing reform to lawmakers, says a White House spokeswoman. The White House has called for legislation that would: (1) cap Medicare Part D beneficiary annual out-of-pocket pharmacy expenses, (2) give insurance companies an incentive to negotiate better prices for costly drugs, and (3) limit drugmakers’ price increases.”
New Federal Rules Will Let Patients Put Medical Records on Smartphones
On March 9, federal officials released groundbreaking rules that will let patients download their electronic health records and other health care data onto their smartphones. Officials said the rules likely will give patients a greater say in health care decisions and put an end to a long-standing practice in which some doctors and hospitals resist handing complete medical files over to patients upon demand.
HSA Compliance Corner
Coronavirus Treatment Below the Deductible? Yes!
COVID-19 is on the top of many Americans' and public officials' minds. Under new guidance from the IRS, testing and treatment for COVID-19 can be covered below the deductible on an HSA-qualified plan without disqualifying anyone covered on the plan from making or receiving contributions to an HSA.
IRS Releases 2019 Form 8889 and Instructions for HSA Reporting, Updates Publication 969
The IRS has released the 2019 version of Form 8889 (HSAs) and its instructions, and has updated Publication 969 (HSAs and Other Tax-Favored Health Plans) for 2019 tax returns. The 2019 versions of Form 8889 and its instructions are substantially similar to their 2018 counterparts. Revisions to Publication 969 for 2019 are also minimal.
IRS Issues 2019 Version of Publication 502 for Medical Expenses
The IRS has released an updated version of Publication 502 for the 2019 tax year. Publication 502 describes the medical expenses that are deductible by taxpayers on their 2019 federal income tax returns. The 2019 version is substantially similar to its 2018 counterpart.
HSA Industry News
Aon and Willis Towers Watson to Combine
Aon and Willis Towers Watson announced a definitive agreement to combine in an all-stock transaction. The combined company, to be named Aon, will be a premier, technology-enabled global professional services firm focused on the areas of risk, retirement and health, the firms say.
HSA Best Practices
Providers Offer Workarounds for HSA Restrictions
As HSAs take on greater investing opportunities, providers are employing strategies designed to overcome some restrictions that don't affect traditional DC plans. For example, HSAs cannot offer collective investment trusts, which are permitted for qualified retirement plans under ERISA.
The HSA Market
Firms Strive to Bulk Up Options for HSA Investment
Among the steps taken by HSA providers to encourage greater investing is the offering of institutionally priced shares even though the aggregate HSA dollar amount for investing pales in comparison to those of 401(k) plans. Some providers allow participants to begin investing right away in their HSA accounts as opposed to first establishing a threshold account balance.
HSAs & Retirement
Should I Have an HSA if I’m Young, Single and (Mostly) Healthy?
If I have an HDHP, it’s probably worth looking into an HSA. They aren’t perfect for everyone, but time is on my side. Even though my medical expenses aren’t high right now, they probably will be when I get older, so I should start putting money into an HSA ASAP.
The Importance of Consumer Choice in Affordable Health Care
Having a 401(k) account doesn't solve all financial retirement concerns for every American. Americans lack this savings option for health care, and it's drastically decreasing their quality of life in retirement. Imagine if you had opened a 401(k) 10 years earlier. How might your retirement look today? You can do the same thing for health care costs through an HSA.
Maximizing Your HSA
Everything You Need to Know About HSAs
An HSA is similar to a 401(k). But instead of saving for retirement, you are instead putting money away for future medical expenses. And yes, there are some lucrative tax benefits. So what are the requirements for getting an HSA? Well, let’s take a look.
Triple Tax-Free? HSAs Offer Even More!
We hear Health Savings Accounts referred to as offering triple tax savings. But limiting the discussion to three forms of tax savings only doesn’t do it justice. Here’s one that few people talk about – or even understand.
HSAs as a Legacy Planning Tool
Congress has made IRAs much less attractive to inherit and caused most financial planners to take a second look at their clients’ estate plans and evaluate other strategies for leaving legacies to their heirs. One of the vehicles getting increased consideration is a little-known provision in the HSA law that allows individuals to provide tax-advantaged funds to their beneficiaries.
Consumer-Driven Health Care
What Is the Cost of Getting Tested and Treated for the Coronavirus?
Experts say people’s concerns about unexpected medical bills related to coronavirus testing could deter many people from being tested or seeking medical care if they develop symptoms. The costs related to coronavirus testing and treatment are still not clear. Here’s what we know so far.
Can Telehealth Benefits Combat the New Coronavirus?
Virtual solutions are useful for assessing and triaging individuals who are concerned about whether they have the disease. Those who don't need diagnostic or treatment service can either stay home or be instructed both where to receive services and how to access them without risking additional spread of the disease, while those with a milder form of COVID-19 can be monitored in the home setting.
The Next Big Thing in Health Care Is …
Health care can learn from the retail industry. The most successful online retailers use advanced technology to understand our behaviors and our buying habits and then recommend products tailored to our interests. The health care industry is beginning to employ the same approaches, albeit with a much more stringent attention to privacy concerns related to the very personal nature of consumer data.
How Health Systems Are Confronting the Retail Revolution in Healthcare
Traditional retailers like Walmart, Walgreens and CVS have found an opportunity in healthcare: delivering expedited, integrated care through their walk-in and urgent care clinics. As HDHPs and HSAs place more financial responsibility on the patient, they are looking at healthcare from the consumer lens and demand a better experience.