HSA News for March 9, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Supreme Court to Hear Obamacare Appeal
On March 2, the Supreme Court announced it will take up a case seeking to overturn the Affordable Care Act. The major announcement means that the case will loom over the November elections and could make the ACA an even bigger issue in the presidential race.
Trump Signs $8.3 Billion Coronavirus Package
President Trump signed a bill on March 6 providing $8.3 billion in emergency funding to combat the coronavirus outbreak. Trump’s signing of the bill capped a week of aggressive action on Capitol Hill to secure a deal on the funding and pass the legislation in both chambers.
States, Insurers Move to Limit Coronavirus Testing Costs for Patients
States are moving to block insurers from charging members for coronavirus testing, putting pressure on the industry to ease costs that might discourage people from getting diagnosed and treated. As California and Washington became the latest states to require that insurers make the testing free for their customers, the insurance industry began taking voluntary steps.
HSA Studies & Analysis
2019 Year-End Devenir HSA Research Report
HSA growth accelerated in 2019, jumping to almost $66 billion in assets held in over 28 million accounts, a year-over-year increase of 23% for assets and 13% for HSAs for the period ended December 31st, 2019. Devenir projects that, by the end of 2020, the HSA market will exceed $77 billion in assets held by over 30 million accounts.
Devenir's Credit Union HSA Update
Devenir tracks HSAs in the credit union industry closely through NCUA filings and a variety of other sources. There were 851 credit unions holding HSA assets (16% of credit unions), up from 832 credit unions three years ago. As of 12/31/19, total HSA assets held at credit unions totaled $1.76 billion, up 8% year-over-year.
HSA Compliance Corner
Can’t Enroll on an HSA-Qualified Medical Plan if Not HSA-Eligible? Nope!
It’s a common point of confusion around Health Savings Account programs. You don’t have to be eligible to make or receive contributions to an HSA to enroll in an HSA-qualified medical plan.
ICHRAs and HSAs: Beware the Toxic Mixture
Individual Coverage HRAs are becoming a small but growing part of the employee-benefits landscape. If you’re offered an IHCRA in the future and also want to contribute to an HSA, be careful. This funding mechanism could disqualify you. Here’s what you need to know.
HSA Industry News
Fidelity’s New Mutual Funds Target HSA Investments
Fidelity launched two new mutual funds designed specifically to be used within HSAs as part of a push to entice more clients to use the accounts as investment vehicles. The Health Savings Fund and Health Savings Index Fund are designed to balance growth and downside market protection.
HSA Best Practices
HSAs for Wealthy Clients? Yes!
It’s true that HSAs have modest annual contribution limits. But there is no income barrier: Clients can contribute no matter how much they make. That puts these tax-advantaged accounts on the table for big earners.
Big Competition Has Entered the HSA Market: Here Are 4 Ways to Compete on Value
The consumer-directed health landscape continues to change, with new and different providers entering the market. Some of these new entrants are startups focused on a piece of the puzzle, while others bring their powerful reputation, plentiful resources and enticingly low prices. All these factors have the potential to make waves and pose significant challenges to existing providers.
The HSA Market
HSAs and Chronic Conditions
Employers, particularly smaller companies with limited resources to administer medical plans, would be better off if they could consolidate into one plan. But the treatment of chronic conditions under HSA-qualified coverage makes that goal difficult to achieve. There are three distinct ways to address this challenge.
HSAs & Retirement
Why an HSA Needs to Be Part of Your Retirement Plan
If there's one expense that tends to go up in retirement, not down, it's healthcare. And that's why it pays to take advantage of an HSA during your working years. The money you save in an IRA or 401(k) can be used for any purpose, and that includes medical bills. But if you want to buy yourself extra financial security in retirement, then it pays to have an HSA as well.
5 Things to Tell Your Clients About HSAs and Retirement Savings
An HSA is one of the most efficient savings vehicles that an individual can take advantage of, and the only type dedicated to long-term consumer health. Are your clients wondering whether an HSA is right for them? Here are five lesser-known HSA benefits to share with your clients.
4 Things You'll Need to Pay For Yourself Under Medicare
Millions of seniors get health benefits through Medicare, and while the program does provide access to a wide range of providers, it doesn't necessarily offer the comprehensive coverage enrollees might expect. If you're planning to sign up for Medicare in the not-so-distant future, you should know that you'll have to pay for the following services yourself, since Medicare won't cover them.
Maximizing Your HSA
Tapping the Power of a Health Savings Account
Some high-deductible plans give you access to a health savings account. And an HSA has secret powers that most people haven’t begun to tap. An HSA isn’t just a short-term, tax-friendly way to pay for current and future medical bills; it’s also a vehicle for supercharging your retirement savings.
Consumer-Driven Health Care
Coronavirus Testing Could Cost Some Patients Extra
The Trump administration’s efforts to scale up coronavirus testing in the U.S. could leave some patients with unexpected medical bills. Labs and hospitals could bill patients and their insurance companies for testing. How much each patient pays will ultimately depend on whether they have insurance, what kind of plan they have and whether it requires cost-sharing, like deductibles and copays.
Independent Surgery Center Offers Cashed-Based, Transparent Prices
Surgeon Wade Naziri offers his patients transparent, cash-based prices at his independent surgery center. Naziri founded Southern Surgical Center, where he now charges a cash-based price he posts online for bariatric and general laparoscopic surgeries. Unlike most Americans, Naziri’s patients know what they will pay for out-of-network health care.
Crushed by a Hospital Bill? Here’s How You Can Fight for Free or Low-Cost Care
What if a hospital stay or treatment in an outpatient center lands you with medical bills you can’t afford? First of all, don’t rush to pay. You probably have more time than you think, and if a hospital or clinic starts to worry it may never collect a penny, it might be more amenable to accepting a lower amount.
Health Insurer Opens Amazon Storefront
Priority Health, a Michigan-based health insurer, is enabling some members to buy select items via Amazon. Through the company’s branded storefront on Amazon, members will be able to shop from thousands of HSA- and FSA-eligible items and place their orders. Members who already use Amazon can add the eligible items to their existing carts.