HSA News for July 13, 2020
HSA News is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Clash Looms Over Next Coronavirus Relief Bill
Congressional leaders say there will be a fifth coronavirus relief bill approved by Congress, but how lawmakers get to the finish line is anyone’s guess. Huge policy differences separate Democrats in the House from Republicans in the Senate, and lawmakers have just weeks once they return to Washington to complete a bill before they are scheduled to leave again.
Joe Biden and Bernie Sanders Deepen Their Cooperation
Allies of Joe Biden and Senator Bernie Sanders unveiled a sweeping set of joint policy recommendations on June 8, a significant if tentative sign of cooperation among Democrats as Mr. Biden’s campaign continues its appeals to the progressive left. Mr. Biden is expected to adopt many of the recommendations, which were submitted by six policy task forces and cover a wide range of issues.
New Flexibilities Proposed for Grandfathered Group Health Plans
Under a new rule proposed by the Departments of Treasury, Labor, and HHS, "grandfathered" group could change cost-sharing requirements without losing their grandfathered status. The regulation allows the health plans to meet minimum cost-sharing requirements for HSA-qualified plans to enable enrollees to contribute to HSAs.
HSA Studies & Analysis
Devenir: Credit Union HSA Update 3/31/2020
Devenir tracks HSAs in the credit union industry closely through NCUA filings and a variety of other sources. Total HSA assets held at credit unions totaled $1.86 billion as of 3/31/20, up 8% year-over-year. There were 857 credit unions holding HSA assets as of 3/31/20 (16% of credit unions), up from 840 credit unions three years ago.
HSA Compliance Corner
HSAs and HRAs Don't Mix? It's Complicated
Employers need to be careful when they introduce a Health Reimbursement Arrangement to employees seeking to open and fund a Health Savings Account. The combination can be toxic or beneficial, depending on HRA design.
Will the Sudden Popularity of Telemedicine Slow HSA Growth?
As doctors and patients have embraced virtual visits during the pandemic (the volume of April telephonic visits was up more than 8,000% versus April 2019), employers want patients to continue to have low-cost access to this service. That's not a problem for HSA-qualified plans now, but the situation is murky after 2021.
HSA Industry News
Picwell Launches Revolutionary Product Aimed at Taking the Guesswork Out of HSAs
Picwell has launched "Interactive HSA," a hands-on planning tool that takes the guesswork out of HSAs by educating and guiding employees to the appropriate contribution amounts while also helping employers maintain CDHP strategies. Interactive HSA also benefits employers by helping to drive HSA enrollments and contributions throughout the year.
HSA Industry Best Practices
How to Get Above the Commotion and Increase HDHP/HSA Adoption
If you’re working to increase uptake of HDHP/HSAs, you face strong push-back from employees who are allergic to the suggestion of higher out-of-pocket expenses. However, you can avoid the commotion by using research to accurately predict which employee groups are more interested than others in HDHP/HSA plans.
The HSA Market
High Deductible Health Plans Aren’t to Blame for Rising Healthcare Costs
High Deductible Health Plans are causing some individuals to avoid seeking medical treatment because they cannot afford the out-of-pocket expenses, some experts suggest. The implication of this position is employers should only offer higher premium, traditional PPO style plans. This view is inaccurate and misguided as high deductible plans are a response to the issue, not the cause.
HSAs & Retirement
Why Aren’t Employees Using Their HSAs as a Retirement Vehicle?
Saving in an HSA for health care expenses in retirement is one of the most powerful steps employees can take for retirement planning, but most are missing out on this opportunity, according to a new survey and white paper. Those who have not considered an HSA as a retirement account largely did not know doing so was an option.
The $325,000 Expense Most Retirees Aren't Planning For
When you're envisioning retirement, chances are you imagine spending your money on trips around the world or spoiling your grandkids. But it's not the reality for millions of retirees. Instead, much of their retirement nest egg is spent on an unavoidable expense that isn't nearly as much fun. That expense: healthcare costs. Sadly, far too few people plan for it, and failing to do so could be a major mistake.
How to Manage the Risk of Significant Health Care Needs and Costs
Unexpected health care costs are a major concern for pre-retirees and retirees. And Medicare generally does not cover certain costs, such as dental, vision, hearing and most long-term care. Plus, prescription drugs are covered only if Part D is elected. So, what’s the best way to manage the risk of unexpected health care news and costs? Make Medicare choices wisely.
Are You Forgetting About This Powerful Retirement Savings Tool?
Workers today are encouraged to save independently for retirement, and when we think about doing that, we usually land on tools like IRAs or 401(k) plans. But there's another powerful long-term savings tool you may have access to without even realizing it: a health savings account.
Consumer-Driven Health Care
Why Hospitals Keep Their Prices Secret
What happens if you call your local hospital and ask how much they charge to perform one? Even if you get past the phone tree, chances are that no one you talk to will even understand your question. Which price do you mean, and who’s paying? There are different prices for each, and each price is different for different people.
Workers Are Worried About Money. Can Paytient Provide Peace of Mind?
Employers don’t have a magic wand that makes medical challenges disappear completely, nor can they afford to pick up the complete tab for workers’ care. What can employers do to keep healthcare costs from hurting productivity? Help employees pay unexpected healthcare expenses over time, ideally without added interest.