HSA News for June 8, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Biden Formally Clinches Democratic Presidential Nomination
Former Vice President Joe Biden clinched the Democratic presidential nomination on June 5, officially setting the stage for a contentious general election fight with President Trump this November. The former vice president hit the delegate threshold after most recently winning a series of primaries on June 2.
HSA Studies & Analysis
Early HSA Investment Trends Amidst COVID-19 Pandemic
As HSA investment accountholders react to the financial and public health impact of the COVID-19 pandemic, Devenir has observed HSA investors to better understand how the crisis has shaped their investment behavior. The HSA investor insights you will find below have been compiled using transactional data from January 1st to April 30th for 2019 and 2020.
HSA Compliance Corner
Social Security and HSA Eligibility Aren't Interrelated, Right? Wrong!
There's no logical reason why collecting Social Security benefits should affect your opportunity to make or receive contributions to an HSA. But thanks to an administrative rule (not a law passed by Congress, but a regulation created by the executive branch late last century), it does.
HSA Industry News
Schwab Rolls Out HSA Program for RIAs
Charles Schwab says advisors now can help clients manage investments held in HSAs. This program builds on the firm’s HSA brokerage-account window, which is integrated with the technology of major HSA providers and the platforms run by Optum Bank and Discovery Benefits.
Blue Cross of Vermont Selects Further to Administer HSAs
Blue Cross and Blue Shield of Vermont has selected Further to administer their consumer directed health plan spending account administration services starting January 1, 2021.The relationship provides Blue Cross members a consistent, high quality experience through Further’s HSAs, HRAs, and FSAs.
The HSA Market
Advisors May Pry HRA Business Away From Brokers: Aite
The COVID-19 pandemic has shut down most employers’ efforts to experiment with new types of benefit plans. But, eventually, when employers have time to consider ICHRAs and QSEHRAs, financial advisors may have a shot at winning ICHRA and QSEHRA sales away from traditional benefits brokers, according to a new report from Aite Group. Elsewhere in the report, the analysts suggest that a big increase in the number of unemployed workers could lead to a big increase the number of departing workers with “unaffiliated” HSAs.
HSAs & Retirement
These Are Americans' Top 3 Retirement Concerns
Retirement conjures as many worrisome thoughts as it does exciting ones, largely because it's such a big expense. These fears are reflected in Americans' top three retirement concerns, as reported by SimplyWise. More than two in five workers surveyed reported concerns about healthcare costs in retirement.
A Bit of Good News During the Pandemic: Savings Medicare Beneficiaries Need for Health Expenses Decrease in 2020
In 2020, the predicted saving targets for Medicare beneficiaries to cover health premiums, deductibles, and certain other health expenses in retirement have fallen between 8 and 10 percent since 2019. At the extreme, targeted savings needs are $325,000 in 2020. This amount is lower than the nearly $363,000 required in 2019 but continues to represent a significant amount of money.
3 Things You Can Do Right Now to Prepare for Retirement
Whether you plan to retire in two years or in 10, you should be taking steps now to be financially prepared. This may seem challenging in the middle of the coronavirus crisis, but the longer you wait, the harder it will be to build the nest egg you'll need. So if you can, here are three steps to take ASAP for a secure retirement. The best option to prepare for healthcare costs as a senior is to invest in an HSA.
6 Ways Busy Executives Can Optimize Their Retirement Benefits
If you are able to cover your existing healthcare costs out of pocket, then max out your HSA each year, save your medical receipts, and allow your HSA to compound over time (and tax-free!) through diversified investments. You can always reimburse yourself later on – even many years down the road. Save those receipts. Your HSA can be a powerful form of “self-insurance” in lieu of long-term care coverage.
Maximizing Your HSA
Leveraging the Last-Month Rule to Maximize Tax Savings and Balances
New HSA owners aren't limited to pro-rated contribution ceilings when they become eligible to open and fund an account mid-year. That's great news for owners who want to turbo-charge their tax savings and account balances.
6 Best Investments to Make With Your HSA
HSAs have several benefits. Since HSAs also operate like individual retirement accounts, they are another way for people to increase their savings. The unused funds roll over each year, and individuals can tap into the money for nonmedical expenses after age 65. Here are six mutual funds or exchange-traded funds that investors could add to an HSA.
3 Tax Moves That Could Save You Money During COVID-19
Adopting tax-savvy strategies to boost your financial health is always a good idea -- but it's an even better one in times like these. One of the best strategies is to contribute to an HSA if you are eligible. Since HSAs are funded with pre-tax dollars, contributing to them lowers your tax burden, thereby letting you reap significant savings.
Consumers Should Have a Dedicated Medical Emergency Fund
Establishing an emergency fund with three to six months’ worth of living expenses would be near the top of a list of financial 10 Commandments. It's especially important to establish a separate emergency fund for potential health care costs. By using HSAs as dedicated medical emergency funds, savvy savers can take advantage of unparalleled tax breaks and save big money on the health care costs they incur.
How to Prepare Yourself for the Next Big Emergency
We can't ever predict when emergencies are going to arise or how much they'll cost, but we can improve our ability to weather any financial storm by taking the following actions right now. An HSA is a nice supplement to an emergency fund that can help you cover medical expenses.
Are Health Insurance Premiums Tax-Deductible?
You generally can't withdraw money tax-free from an HSA to pay health insurance premiums, but there are a few key exceptions that can help a lot of people right now. You can take tax-free HSA withdrawals to pay COBRA health insurance premiums. You can also withdraw money tax-free from an HSA to pay health insurance premiums if you're receiving unemployment benefits.
Consumer-Driven Health Care
Finding Affordable Health Care Now
As the coronavirus continues to affect communities across the U.S., it’s more important than ever to have health insurance. And if your income has taken a blow, you may have greater access to affordable coverage than you did while you were working. Kaiser estimates that 79% of those losing employer coverage are likely eligible for subsidized coverage through Medicaid or the ACA marketplace.
Out-of-Pocket Insulin Costs Stagnant for Commercial Members
Although insulin prices more than doubled between 2006 and 2017, out-of-pocket insulin costs for commercial plan members remained fairly steady over the course of that period, even declining slightly after 2013, according to a recent study. However, a fraction of data shed some light on potential insulin cost trends for patients enrolled in HDHPs with an HSA.
Change Healthcare Rolls Out Software to Let Patients Book Healthcare Like Shopping for a Hotel Room
Change Healthcare has rolled out new software that makes booking and paying for healthcare services seem more like shopping online. The company collaborated with Microsoft and Adobe to launch the consumer health platform, which offers patients a more streamlined, transparent experience to shop, book, and pay for medical services.