HSA News for July 27, 2020
HSA news is prepared weekly by Mr. HSA, Roy Ramthun.
News from Washington
Trump Signs Executive Orders Aimed at Lowering Drug Prices
On July 24, President Trump signed four executive orders aimed at lowering drug prices. The orders signed by Trump would move towards allowing states to develop plans to import cheaper drugs from Canada, eliminate a system of drug discounts known as rebates in a bid to simplify the system, and seek to make EpiPens and insulin more affordable for patients of community health centers.
Congress Set for Messy COVID-19 Talks on Tight Deadline
Senators are bracing for a messy, down-to-the-wire fight over coronavirus relief legislation. Congress returned to Washington last week with an already tight three-week time frame to come together on the next emergency COVID-19 package, all the while navigating significant policy differences and the growing pull of the election.
‘Surprise’ Billing Fix Likely Out of Next Covid-19 Package as Fight Over Tests Plays Out
Congress looks unable to protect patients from "surprise" medical bills before the election, despite a push from key health committee chairs and the Trump administration to include a fix in a new coronavirus relief package.
Congress, Decoupling, COBRA Subsidies, Abortion, and HSAs
The Senate, the House of Representatives, and the Trump Administration will be in furious negotiations during the next two weeks to craft a fifth pandemic-relief bill before Congress adjourns by the end of the week of August 3. There's political capital to be gained by passing a bill, but coming to a final agreement won't be easy.
HSA Compliance Corner
The HSA Proportional Contribution Limit
What is the HSA contribution limit for an employee who is enrolled in an HDHP for only a portion of the year? The standard rule is that the employee will have a proportional contribution limit based on the months of HSA eligibility, but in certain circumstances, the last-month rule will allow the employee to contribute to the full statutory limit.
Prices Don't Matter Once HSA Plan Deductible Is Met? Not Really!
Some patients think that once they've satisfied their deductible (or deductible and coinsurance, depending on their plan design), the price that they pay for medical services doesn't affect them. That's often not true.
The HSA Market
Aetna Aims to Offer Alternative to High-Deductible Plans in 2 New Benefit Designs
Aetna is launching two new plan benefit designs aimed at addressing employer concerns about high deductible health plans. The new designs offer members coverage for some preventive services before they meet their deductibles. However, neither plan can work with an HSA.
It’s Time to Emancipate the HSA
While HSA usage and enrollment has expanded significantly in the 17 years since they were enacted, antiquated eligibility requirements continue to restrict HSA growth. It is time to bring HSAs into the present and make them available to all Americans. HSAs are the single best way to pay for medical expenses, and no matter what health insurance they choose, all Americans deserve the break.
Why HSAs Should Be Expanded During Coronavirus Pandemic
Amid the inevitable clamor for special interest spending in the next coronavirus relief bill there is one very good idea. The Pandemic Healthcare Access Act (S.3546/H.R. 6338) addresses both the economy and our health. This simple, one-page piece of legislation allows Americans to pay for their health care tax-free during the duration of the pandemic by expanding HSAs.
Expand HSAs to Boost Economy
A much fairer, clearer, simpler and longer-term salve would be to let any American who pays taxes stash cash in a tax-advantaged HSA. This would help meet a universal need regardless of income level or employment status: to pay for affordable, personalized health care.
HSAs & Retirement
How an HSA Could Transform Your Retirement
Even if you are lucky enough to not need to take advantage of your HSA’s financial benefits for healthcare expenses this year, the money will roll over into next year. In the meantime, you can use the funds to help secure your health in retirement by holding them in income-generating investments, like Perpetual Dividend Raisers. Then, let compounding and dividend reinvestment work their magic.
4 Reasons to Save Outside of Your 401(k) or 403(b)
Depending on your family situation at any given time, an HSA will act more as a tax-advantaged “flow through” account to pay for current medical bills or more as a saving and investment account for your future health care needs in retirement. If you can use it as a saving and investment vehicle, an HSA has more tax-advantages than simply saving for retirement health care expenses in your 401(k) or 403(b).
Maximizing Your HSA
Understanding How Your HSA Helps You Save Money
Navigating health insurance plans can be confusing. One health insurance product that's relatively easy to understand is a health savings account. This type of account can help account holders save money on the costs associated with their healthcare.
How to Make the Most of Your Health Savings Account Right Now
As coronavirus cases surge in some parts of the country, many Americans are still reeling from the economic impact of the pandemic. In response, Congress has passed several relief bills, including legislation that has made HSAs easier to use during this difficult time. Here are the biggest changes.
42% of Americans Don't Know This Key Feature of Their Health Insurance Plans
Healthcare is a massive expense for working Americans, as well as retirees, so it pays to do what you can to make it as affordable as possible. But new data from HSA Bank reveals that 42% of Americans may be losing out on an opportunity to save money by not knowing one key thing: whether their health insurance plans are eligible for an HSA.
Consumer-Driven Health Care
Recommendations for Trump's Second-Term Health Care Agenda
First, Mr. Trump should ensure that every American has an HSA. Broader access to HSAs is crucial to better engage consumers to seek value and increase competitive forces on providers to lower prices and improve quality.
Health Care Engagement: Consumers Continue to 'Kick That Can Down the Road'
A majority of U.S. consumers don’t understand various aspects of their health care insurance costs, while many aren’t actively planning for the health care expenses, according to HSA Bank’s Annual Health and Wealth Index. Only around 42% of survey respondents were classified as being at least “highly engaged” with preparing for their health care expenses and taking an active role in their physical health.
Direct Primary Care Backers Hope COVID-19 Entices Docs to Alternate Payment Model
Proponents of alternative payment models hope the coronavirus pandemic will drive adoption of value-based arrangements down the line, as the financial pressures facing fee-for-service primary care practices have highlighted the shortcomings of paying for volume. Fee-for-service practices have been staring at potential financial ruin since March.
Health Care Price Transparency Bill Would Be a Win for Taxpayers, Employers and Consumers
Today, most health care providers have no reason to offer competitive pricing, because price is rarely a consideration for consumers. Sunlight – in the form of competition in this case – is indeed the best disinfectant. Competition would force high-cost providers to cut prices in order to remain competitive.
The result would be a huge win for taxpayers, employers and consumers.
Risk of Major Cardiovascular Events Not Affected by Enrolling in a High-Deductible Health Plan
Enrolling in high-deductible health plans (defined as having a deductible of $1,000 or more) does not increase a person’s risk of experiencing major cardiovascular events, according to a new study. Overall, the timing of an individual’s first major adverse cardiovascular event did not appear to be affected in any way if they were enrolled in a high-deductible plan.