HSA News for July 20, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
GOP Coronavirus Proposal Takes Shape
Senate Majority Leader Mitch McConnell (R-KY) is planning to start briefing his caucus next week on the forthcoming Republican proposal, which he wants to use as a framework for negotiations with Democrats.
HSA Studies & Analysis
Study: 55% With HSAs Don't Contribute to Them
One in three Americans do not have a "health savings account," and more than half who do haven't contributed to it in more than a year, according to an analysis published Friday by JAMA Network. Nearly one-third of people enrolled in a high-deductible health plan reported that they couldn't afford contributing to a "health savings account," the researchers said. [We encourage you to read the methodology of this study carefully.]
HSA Compliance Corner
Exercise Equipment Withdrawals From an HSA? Not Tax-Free!
The gym was closed for months. You bought some equipment to maintain your fitness regimen. Good for you. But you won't receive a tax break for doing so. Exercise equipment almost always falls into the category of "general health" instead of "treating, mitigating, or curing an injury, illness, or condition," so withdrawals from an HSA are subject to taxes and penalties.
HSA Industry News
HSA Bank Releases 3rd Annual Health and Wealth Index(SM)
HSA Bank released its third annual HSA Bank Health & Wealth Index, a report that explores trends in consumer financial and physical health. Each consumer surveyed received a combined health and wealth score between zero and 100. The average consumer was found to be moderately engaged in their health and wealth with an average index score of 56.4.
HSA Provider Offers Help for Medicare-Eligible Account Holders
Employers that offer HDHPs with HSAs and that help employees transition to retirement may be interested to know that HealthSavings Administrators has partnered with eHealth to provide Medicare-eligible HealthSavings members with easy access to plan comparison tools and telephone support from eHealth’s licensed Medicare agents while shopping from a broad selection of private Medicare plans.
HSA Industry Best Practices
5 Ways to a ‘Better’ HSA
There are lessons in positioning and behavioral finance that we “learned” years ago with 401(k)s that might still be holding back the effective utilization of HSAs. There’s much to teach workers about the (more) effective use of HSAs—and maybe a less or two from retirement that can help employers as well.
Benefits of Health Savings Accounts
People are being asked to shoulder more of their health burden, but there’s a solution to this potential problem: health savings accounts. In this latest episode of the MassMutual’s Financial Wellness podcast series, hear Susan Grader from MassMutual and Mark Irzyk from WEX Health as they explore how HSAs can be a valuable tool for financial wellness and retirement as health and wealth continue to converge.
The HSA Market
Employer Survey Shows Continued Growth in Self-Funding, HSAs
Pennsylvania’s employers continue to favor self-funded insurance plans and more employers than ever are offering their employees HSAs to pay for qualified medical expenses, according to a recent survey.
Walmart Jumps into Health Insurance Market, Including Medicare
Walmart will now sell health insurance policies directly to its customers, according to a spokesperson, confirming speculation sparked by job postings from the retailer for Medicare sales managers and insurance agents. Walmart's reach across U.S. consumers — including seniors — has the potential to drive up volume for Medicare plans.
Mercer: Direct Primary Care Gains Ground as Employer Strategy
Employers we’ve worked with have considered direct primary care as a strategy to address a number of different healthcare challenges – for example, the limited availability of care in a geographic location; a population with a high incidence of chronic conditions; and affordability issues for a low-wage workforce.
Does Decoupling Threaten FSAs?
Several members of Congress advocate allowing most adult Americans - not merely those covered by HSA-qualified medical plans - to open a Health Savings Account. Will this effort be the death knell for Health FSAs? Are the concerns valid? Let's examine the issue.
HSAs & Retirement
Should You Max Out Your 401(k)?
It makes sense to get as many tax breaks as you can while ensuring financial security in your later years. But if you're eligible for other accounts and don't have enough to max them all out, you'll need to think about what to do after you contribute enough to your 401(k) to get your full employer match: put money in your IRA or HSA, or add more to your 401(k).
Consumer-Driven Health Care
Consumer Decision Making in Healthcare: The Role of Information Transparency
Providing consumers greater access to transparent information that they can understand has the potential to significantly improve their ability to engage in choosing where to receive care, including making trade-offs that are important to them, while improving their experience. When armed with transparent information, consumers are likely to make different decisions.
Amidst a Public Health Crisis, What Do Consumers Need From Health Plans?
The COVID-19 public health crisis has shifted the healthcare landscape, if not transformed it. More providers are enlisting telemedicine to substitute for in-person appointments. Communication to help consumers fully understand healthcare costs and options is more critical than ever before. That’s the dominant theme of a new report gauging consumer sentiment and engagement with their health plans.