HSA News for August 17, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Senate Leaves Until September Without Coronavirus Relief Deal
The Senate left Washington, D.C. until September — the latest sign that a deal on a fifth coronavirus relief package is, at least, weeks away. Senate Majority Leader Mitch McConnell (R-KY) had kept the chamber in session this week as a last-ditch attempt to create space for the administration and congressional Democrats to get an agreement. The House already left town and isn't expected to return until September 14.
Pelosi, Mnuchin Talk but Make no Progress on Ending Stalemate
House Speaker Nancy Pelosi (D-CA) and Treasury Secretary Steven Mnuchin spoke by phone on August 12 but appeared to make no progress toward breaking the impasse on a fifth coronavirus relief package. The call, initiated by Mnuchin, is the first time they've spoken since talks collapsed last August 7.
HSA Compliance Corner
Spouse’s Benefits Don’t Affect My HSA Eligibility? No! They Do!
Your eligibility to fund a Health Savings Account is affected by your spouse’s (and for young workers, your parent’s) benefits decisions. Be sure to understand these implications so that you can plan accordingly and either don’t lose benefit options or fail to comply with federal tax law.
HSA Industry News
Ribbon Health Launches HSA Eligibility Service to Support Consumer Engagement
Ribbon Health announced the launch of Ribbon HSA Eligibility Service to help consumers understand health plan benefit information, inform HSA engagement, and take advantage of tax savings benefits. HSA companies can rapidly implement this service to build cost calculators, help consumers understand which plans are HSA eligible, and increase overall consumer engagement.
The HSA Market
HSAs: The Road Less Traveled
The HSA struggles to gain traction. In the 15 years since it was born, the HSA remains an awkward adolescent compared to its robust older sibling, the 401K. Employers are not embracing it like the 401K, and employees don’t know why they need one. Suddenly, there’s an opening we didn’t see coming. COVID-19 has changed the landscape. It has been a wakeup call for legislatures and government officials to help Americans afford their future healthcare.
It’s Back to Basics for Benefits Priorities
Prior to the pandemic, ultra-low unemployment put a spotlight on ‘lifestyle benefits’ for employees. The COVID-19 downturn has already shifted the focus of many plan sponsors. Employers now are focused on the possibility of offering HDHPs paired with HSAs, says Brian Colburn of Alegeus. “That is the biggest thing we have seen from our end of the market.”
HSAs & Retirement
Whatever Retirement Looks Like for You, HSAs Can Help You Get There
In today’s world, a one-size-fits-all idea of retirement doesn’t fit everyone. Thankfully, there’s a savings vehicle that offers specific benefits for each of these retirement concepts. HSAs, provide powerful features to help account holders easily reach their successful version of retirement.
Planning for Retirement Health Care Expenses
Most pre-retirees badly underestimate their health care costs in retirement. While no individual has any idea what his health care needs are at some distant point, a look at the averages is pretty frightening. Fortunately, there are at least three widely available tax efficient techniques to assist in accumulating the additional funds that may be required.
3 Well-Kept Retirement Planning Secrets You Need to Know
Most people don't think of HSAs as retirement savings vehicles, but they're actually one of the best. Money you contribute to an HSA reduces your taxable income for the year, and if you use the money for medical expenses at any age, you won't owe taxes on it at all. HSAs are not subject to required minimum distributions, so it's also a smart spot to park your cash if you want to be able to withdraw the money at your own pace.
Maximizing Your HSA
How Does an HSA Work, and 8 Other HSA Account Questions Answered
If you have a high-deductible health plan, opening an HSA account is a very important decision to make. Health savings accounts are a phenomenal, tax-advantaged method of keeping you health care costs down. But how exactly does an HSA work?
2021 HSA Changes: Use Health Savings Accounts if You Can
HSAs are a great way to get valuable tax breaks in exchange for setting aside money for future healthcare expenses. For those who qualify, the tax benefits are so lucrative that many people use HSAs as long-term investing vehicles with the intent of paying healthcare expenses in retirement.
HSAs Owners Didn't Need Additional Flexibility to Deal with Pandemic
The Trump Administration provided relief earlier this year to employers who offer certain employee benefits. HSAs weren't included in this effort. And for good reason. HSAs have this flexibility already.
Consumer-Driven Health Care
Primary Care Doctors Look at Payment Overhaul After Pandemic Disruption
Physicians and health policy experts say the pandemic is accelerating efforts to restructure primary care and put it on a firmer financial footing. The efforts also aim to address long-festering problems: a predicted widespread shortage of primary care doctors in the next decade, a rising level of physician burnout and a long-recognized underinvestment in primary care overall.