HSA News for June 1, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
McConnell: Talking About Fifth Coronavirus Bill 'in the Next Month or So'
Senate Majority Leader Mitch McConnell (R-KY) said on May 26 that there would "likely" be a fifth coronavirus relief bill "in the next month or so. It will not be the $3 trillion bill the House passed the other day. But there's still a likelihood that more will be needed," McConnell said.
McConnell: Next Coronavirus Bill Will Be Final COVID-19 Package
Senate Majority Leader Mitch McConnell (R-KY) said on May 29 that the next potential relief bill will be the final coronavirus stimulus legislation. The GOP leader's prediction that the bill would be the final economic package comes as lawmakers are nowhere near a deal that could pass both chambers and get President Trump's support.
White House Bids for 'Surprise' Billing Fix Ahead of Next Rescue Package
The White House is renewing a push to end “surprise” medical bills — possibly as part of the next coronavirus rescue package — in a bid to deliver on protecting insured patients from sometimes staggering costs of emergency or out-of-network care.
Reps. Wenstrup, Kelly Introduce Bipartisan Family Savings Flexibility Act
Reps. Brad Wenstrup (R-OH) and Mike Kelly (R-PA) recently introduced bipartisan legislation (H.R. 7008) to provide flexibility for families with health FSAs and dependent care FSAs. The bill also would increase the contribution limits for HSAs to the annual limit on out-of-pocket expenses under an HSA-qualified plan.
HSA Compliance Corner
Contribution Limits, Domestic Partners, and Adult Children
Congress made it clear that married couples can contribute up to the maximum family contribution. But it's possible that more than one adult not married to another adult on the policy is HSA-eligible. The law is silent on how much a domestic partner, a former spouse, and adult children to age 26 who are no longer tax dependents can contribute. The IRS has never issued guidance on this topic.
HSA Industry Best Practices
Alternatives to Cutting HSA Contributions
Employers contemplating whether to cut HSA contributions to help with their financial constraints should understand the implications of doing so, experts warn. Now more than ever, an HSA is a key component for employees to manage their health costs, and if employees are laid off or furloughed, they may use HSA funds to pay COBRA premiums and other health insurance payments.
HSAs and Retirement
Triple-Tax Savings Make HSAs Key Strategy to Prepare for Future Health Costs
HealthView Services issued a new report highlighting the importance of saving specifically for health care costs in retirement. Data from HealthView Services show that an average American couple entering retirement in good health can expect approximately $600,000 in future lifetime health care costs. Yet many do not factor health expenses into their retirement financial planning.
Stick It to the Tax Man: Maxing Your 401(k), HSA to Turbocharge Your Retirement
Let’s say you’re as fanatical as I am about saving and you’re maxing your 401(k). But now you’ve caught the saver’s bug and you want to save even more. If your health insurance plan includes them, you can consider using an HSA as an “extra” retirement plan. This requires a little explaining.
Americans' Retirement Plans Are Improving, but Here's How to Make Yours Even Better
Many people struggle to save as much as they'd like to, and an alarming number of people haven't begun saving for retirement at all. But the news isn't all bad. American workers' confidence in their retirement plans is rising, according to a recent EBRI survey. Despite these positive signs, there's still a lot of room for improvement. Here are a few steps you can take to improve your retirement readiness right now.
43% of Americans Worry About Doing This in Retirement
It's not surprising to learn that 43% of Americans worry about paying medical bills during retirement, according to the May 2020 Simplywise Retirement Confidence Index. If you're concerned about healthcare costs during your senior years, there's one handy savings tool it really pays to put some money into: a health savings account.
Maximizing Your HSA
3 Ways an HSA Can Improve Your Finances
An HSA can help you stretch your health care dollars and build your retirement savings at the same time, as long as you’re eligible for one and you spend the money in your HSA on eligible expenses. Here’s a look at the benefits of HSAs and tips for opening one.
How the $2.2 Trillion CARES Act Helps Americans Save Money on Their 2019 Taxes
When the Trump administration pushed this year’s income-tax deadline from April 15 to July 15, it provided taxpayers three extra months to reduce their tax bill. One way people can shrink their tax bill is by contributing to their HSAs.
Consumer-Driven Health Care
FSAstore.com, HSAstore.com Launch Expanded Online Product Selection of Newly Eligible OTC Medications for FSAs, HSAs
As a result of the recently passed CARES Act, thousands of new products are now available for tax-free purchase with an FSA or HSA without a prescription for the first time since 2011. This expanded product selection is now available on FSAstore.com and HSAstore.com. Menstrual care products will be added in the coming weeks.
The Future of Telehealth Is Uncertain
The CARES Act allows telehealth services to be included under HDHPs until December 31, 2021, and some are hopeful that will be extended. As use of telehealth services increases, experts predict the services could lead to a long-lasting change for employers and employees. But the current relief ends December 31, 2021.
The Shocking Reason Hospitals Keep Their Prices a Secret From You
In health care, most prices are hidden. Earlier this month, big, profitable hospital systems were in court to make sure that American patients remain in the dark, challenging a Trump administration rule that would require them to publicize prices, including those negotiated with insurance companies. No other industry is fighting to hide prices from consumers.
Coronavirus Accelerates AI in Health Care
From predicting outbreaks to devising treatments, doctors are turning to AI in an effort to combat the COVID-19 pandemic. While machine learning algorithms were already becoming a part of health care, COVID-19 is likely to accelerate their adoption. But lack of data and testing time could hinder their effectiveness — for this pandemic, at least.