HSA News for April 20, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Treasury Secretary, Democratic Leaders 'Hopeful' for Agreement on Coronavirus Package
Treasury Secretary Steve Mnuchin and Democratic congressional leaders say they're hopeful a deal on funding for the popular Paycheck Protection Program for small businesses will be reached and a bill will pass in the coming days. The initial $349 billion for the small business loans program ran out of money last week.
Senate Delays Expected Return Until May
Senate Majority Leader Mitch McConnell (R-KY) has announced the Senate will not reconvene in Washington sooner than May 4, two weeks later than the previously scheduled date due to the coronavirus pandemic.
House Delays Expected Return Until May Amid Coronavirus Pandemic
The House of Representatives is not expected to re-convene until at least May 4, delaying a return originally planned for next week as stay-at-home orders remain in place across the nation.
The Case for Health Plan Flexibility During COVID-19
Americans must still abide by an out-of-date mandate that only allows them to qualify for an HSA if it is paired with an HDHP. We should permanently abolish this mandate. Legislation introduced by Reps. Ted Budd (R-NC) and Chip Roy (R-TX) temporarily decouples HSAs from HDHPs, allowing more Americans to hold an HSA to save for health-care expenses during the coronavirus pandemic.
HSA Studies & Analysis
HSA Investments: Mutual Fund vs. Self-Directed Brokerage Account Holders
Devenir has found that self-directed brokerage accounts have historically held larger balances on average, but mutual fund accounts are growing more rapidly. In addition, self-directed brokerage accounts have had greater variability in average balance over time. This has led to a slow convergence in average balances across both account types.
HSA Deposit Rates – 2020 Update
The coronavirus pandemic has forced the Federal Reserve to cut rates close to zero in order to dampen the effect of the virus on the U.S. economy. In this unique time, Devenir has been observing how health HSA providers have reacted to the rate cut. They have seen a decrease in the rates given to HSA account holders. This response has been seen at all levels, from accounts with $1,000 to $10,000.
HSA Compliance Corner
HSAs Aren't Subject to COBRA? True, But It Doesn't Matter
HSAs aren't medical coverage. Thus, they're not covered by COBRA continuation requirements. But HSAs can be used to pay premiums to keep medical coverage in place through COBRA continuation coverage.
HSA Industry News
HSA Bank Teams Up with Jellyvision to Design an HSA and Consumerism Platform to Help Employers Reduce Healthcare Costs
HSA Bank and Jellyvision announced a partnership to develop a first-of-its-kind HSA product that will focus on user education, healthcare consumerism, and highlight just-in-time benefits for employees. The new HSA experience will be available as an add-on to Jellyvision's ALEX platform to help bring even more clarity to health insurance options.
Voya Launches HSA ‘Digital Assistant’ for Participants
Voya Financial is helping participants with the “where and how” of HSA investing by launching a new digital assistant, myHealthMoney, powered by SAVVI Financial. The online tool is designed to make health care savings decisions easier by providing a suggested amount to contribute to their Voya HSA.
Starship Partners with Carbon Health to Bring Free Coronavirus Assessment Tool to Users
Starship has announced a partnership with Carbon Health to help people assess their risk of COVID-19 and to more easily connect them with necessary medical services. Starship users can answer a few simple questions and Carbon Health will assess whether they require further evaluation with a provider, including in-clinic testing for COVID-19.
The HSA Market
Individual Coverage HRAs and HSAs
The Trump Administration created ICHRAs last year to allow employers to give workers a tax-free stipend to purchase medical coverage in the non-group market. The market has been slow to develop, but interest was on the upswing even before the recent, sudden, dramatic change in our economy. Expect that interest to accelerate in the coming months as employers seek new ways to manage costs and simultaneously retain and attract talented workers.
Is Value-Based Insurance Design Experiencing a Renaissance?
The growing costs faced by today’s health care purchasers and plan members have many returning to proven strategies like V-BID. Here are a few of the concepts purchasers should revisit as they look to the next plan year.
HSAs & Retirement
Medicare and HSAs: Here’s What You Need to Know
If you currently have an HSA through your employer, it’s important to know that you may no longer contribute to your HSA account when you are ready to switch to a Medicare Part A and/or Part B plan. This is a law and does not vary from plan to plan. If you decide to work past age 65 and delay your Medicare coverage, this contribution rule applies at that point as well.
Maximizing Your HSA
Finally, You Can Now Buy Menstrual Products Using Your HSA
After years of lobbying in Washington, menstrual care products are officially considered medically necessary items that you can purchase with your FSAs and HSAs, specifically tampons, pads, liners, cups, sponges or similar products.
Consumer-Driven Health Care
Paying for Healthcare in the Age of Coronavirus
Whether you face high healthcare costs because of the coronavirus or another medical condition, here’s what you can do to lower your financial risk.
How to Pay for Coronavirus Medical Expenses
New laws are expanding coverage for COVID-19 tests, and some insurers are voluntarily waiving cost-sharing for some COVID-19 treatment expenses. There are ways to reduce your costs for COVID-19 testing and care, but you need to know the rules. The following steps can help.
Nearly Half of Millennials Take This Huge Risk
A survey released in late 2019 revealed that 49% of millennials postponed medical treatment because of financial constraints. If you're putting off medical care because of money, it's time to break that habit. The best way to help ensure that you won't have to delay health matters is to build a solid emergency fund. Be sure to capitalize on tax-advantaged medical spending accounts.