HSA News for March 30, 2020
HSA news is compiled by Mr. HSA, Roy Ramthun.
News from Washington
Trump Signs $2 Trillion Coronavirus Relief Package
On March 27, President Trump signed a $2 trillion economic relief package aimed at helping American workers and businesses impacted by the coronavirus pandemic.Trump signed the legislation hours after it passed the House. The massive bill, dubbed the CARES Act, was the result of days of high-stakes negotiations between the Trump administration and Senate leaders.
Lawmakers Already Planning More Coronavirus Stimulus After $2T Package
Lawmakers are already planning another round of legislation aimed at keeping companies flush with capital and millions of workers on payrolls amid the coronavirus pandemic, even after passing a $2 trillion relief bill this past week, the largest stimulus of its kind in U.S. history.
Chances for Drug Pricing, Surprise Billing Action Fade Until November
The chances of Congress passing legislation to lower drug prices and protect patients from surprise medical bills are fading, at least until after the November election. As the coronavirus crisis overshadows all other activity on Capitol Hill, the massive response package is expected to push off a key deadline for drug pricing and surprise billing legislation.
The IRS Says You Have Until July 15 To Make 2019 IRA or HSA Contributions
The Internal Revenue Service has clarified that the deadline for making IRA and HSA contributions for the 2019 tax year has been extended to July 15, 2020. That’s the new deadline for filing and paying taxes for the 2019 tax year, pushed back from April 15, 2020, as COVID-19 continues to impact the U.S.
HSA Compliance Corner
IRS Filing and Payment Deadlines Questions and Answers
In Notice 2020-18, the Treasury Department and the IRS announced special Federal income tax return filing and payment relief in response to the ongoing COVID-19 emergency. Below are answers to frequently asked questions related to the relief provided in the Notice. These questions and answers will be updated periodically.
Is an HRA Disqualifying Coverage? Probably, But . . .
HSAs and HRAs typically don't mix. But there are exceptions. Employers who create an HSA program for their employees need to be careful about other medical benefits that they offer to their workers, such as HRAs. These other benefits - as benign as they may seem - may disqualify participants from opening and making or receiving contributions to an HSA.
HSAs & Retirement
If You Didn't Save as Much for Retirement as You Wanted Last Year, You Now Have 3 Extra Months
If you didn't save as much for retirement last year as you'd hoped, there's good news: You now have until July 15 to contribute to an IRA. But it's not just retirement. The tax deadline extension also means you can put more money into an HSA for the 2019 tax year.
Maximizing Your HSA
The $2 Trillion Coronavirus Stimulus Bill Also Includes a Provision That'll Help You Save on Pads and Tampons
Shoppers are about to get a break on purchasing period products under a provision tucked into the $2 trillion coronavirus aid package. The change in law would allow people to pay for pads, tampons, cups, sponges, and liners with HSAs. Under current law, these accounts can be used for purchases from contact solution to sunscreen and aspirin, but not to pay for menstrual products.
COVID-19: That ‘Someday’ Event Clients Were Told to Prepare For
COVID-19 is a great example of the mythological “event” that everyone tells you to prepare for “someday.” In the case of COVID-19, an HSA is the ideal tool to help individuals pay for health care and provide financial wellness support.
Consumer-Driven Health Care
FDA Move Opens Door to Biosimilar Insulins, Other Biologics
As of March 23, 2020, insulin and other biologics will be regulated by the Food and Drug Administration as biological products rather than drugs. This means that any insulin (or other biologic) currently approved as a "follow-on" will now be deemed a biosimilar and will be interchangeable with the branded products. It's not yet clear to what extent the move will lower prices.