HSA News for April 6, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
McConnell, Pelosi Signal More Virus Aid Likely From Congress
In a shift, the top leaders in Congress made it clear on April 3 that there will be another coronavirus rescue package amid the stark need for federal resources to fight the pandemic and economic crisis. Senate Majority Leader Mitch McConnell and House Speaker Nancy Pelosi began to outline fresh priorities signaling a potential thaw to the sniping and opportunity for renewed bipartisan ground.
Pelosi, McConnell Clash Over Next Coronavirus Bill
Nancy Pelosi (D-CA) and Mitch McConnell (R-KY) are publicly at odds over a potential fourth coronavirus package. The two leaders are taking different tactics on follow-up legislation and sparring through the media on next steps to address the pandemic. The mixed messaging underscores the looming challenge of keeping the congressional response to the coronavirus bipartisan.
Pelosi Eyes End of April to Bring a Fourth Coronavirus Relief Bill to the Floor
House Speaker Nancy Pelosi said in a letter to fellow House lawmakers on April 4 that she wants to bring a second stimulus package to the floor by the end of this month to further relieve the American public during the coronavirus pandemic. The aggressive push comes as members of Congress disagree over the next steps to take regarding the economic fallout and the spread of the coronavirus.
HSA Studies & Analysis
HSAs: Who’s Investing and Who Isn’t?
Only 6% of health savings account holders invest in those accounts, according to an Issue Brief published by EBRI. With such powerful tax benefits provided by these accounts but, evidently, not being taken advantage of, the organization set out to understand the difference between HSA investors and those who were using them as a checking or savings account.
EBRI: Are HSA Investors Born or Made?
This study uses the EBRI HSA Database to examine trends and patterns in who invests their account and, in particular, what factors are associated with an increased likelihood to invest. More specifically, it explores to what extent the decision to invest is endogenous to the accountholder. In short: Are HSA investors born, or are they made?
HSA Compliance Corner
Telemedicine Below the Deductible? Yup - for Now
The $2 trillion-plus pandemic-response legislation passed into law last week finally has clarified how accessing virtual medicine services affects an HSA owner's eligibility to make and receive account contributions. And the outcome is what we had hoped: Receiving care through virtual medical visits isn't disqualifying, even if that visit is covered below the deducible.
HSAs & Retirement
How the Bera-Smith Bill Would Help Seniors
Under current law, anyone enrolled in any part of Medicare is disqualified from making or receiving contributions to an HSA. This provision hurts working seniors with lower incomes and those working for small companies (who typically are lower-paid). Here are three distinct examples of how current Social Security and Medicare rules discriminate against certain working seniors.
Maximizing Your HSA
How to Use Your HSA During a Pandemic
In challenging financial situations, it may be tempting to tap HSA balances to cover a mortgage, auto-insurance, or utility payment, or to purchase groceries. But these balances are a very expensive source of quick cash that owners should almost universally avoid. Be careful how you use your HSA funds.
Tap Your HSA First for Medical Costs During the Coronavirus Outbreak
There’s one thing you may be overlooking when it comes to managing your cash during the coronavirus outbreak—your HSA. Rather than use money that you have in an emergency fund for out-of-pocket medical expenses, you can use the cash that you have in your HSA.It’s also a good time to use those HSA funds to refill your first aid kit and stock up on what you may need if you get the coronavirus.
Consumer-Driven Health Care
He Got Tested for Coronavirus. Then Came the Flood of Medical Bills.
Andrew Cencini had been having bouts of fever, malaise and a bit of difficulty breathing for a couple of weeks. His tests for flu and other viruses came back negative. Later, he was summoned by a local hospital to be tested for coronavirus, where he was placed in an isolation room, put on an IV drip, and given a chest X-ray. Now back at work remotely, he faces a mounting array of bills.
The Stimulus Package Will Help People Pay for Health Care During the Coronavirus Outbreak. What You Need to Know.
The healthcare provisions under the recently enacted $2.2 trillion economic stimulus package will be particularly welcome to families with high-deductible health insurance plans and either HSAs or FSAs, making it more affordable and easier for families to manage their healthcare needs.
Telemedicine, Once a Hard Sell, Can’t Keep Up With Demand
The coronavirus pandemic is pushing the once-niche telemedicine industry into the mainstream, testing its ability to keep up with soaring demand and forcing innovation on the fly. Before the outbreak, telemedicine struggled to take hold. Now, companies like Teladoc Health Inc. and Doctor on Demand Inc. are racing to add doctors and bandwidth, while big tech firms like Microsoft Corp. add services.
Tiny Startup Tackles a Timely Crisis—Paying Off Medical Bills
A tiny start-up company helps customers open up a bank account in which they deposit their paychecks and get a debit card allowing them to receive up to $5,000 in accident protection. Users can also pay $1 a day and receive coverage for all sicknesses.