HSA News for August 24, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Senate Republicans to Introduce Smaller COVID Package That Includes Billions for Postal Service
Senate Republicans are planning to introduce a “skinny” coronavirus relief bill, amid an impasse in negotiations between the White House and top Democratic leaders. The latest relief bill is expected to include $300 in weekly federal unemployment benefits, more money for the Paycheck Protection Program, $10 billion for the Postal Service, liability protections, and money for education and testing.
Supreme Court to Hear Obamacare Arguments One Week After November Election
Oral arguments for the Trump administration-backed lawsuit to strike down the Affordable Care Act will be heard at the Supreme Court on November 10, just one week after the presidential election. Democrats have been hammering Trump over his position on health care, and the lawsuit is hanging over GOP campaigns across the country.
HSA Studies & Analysis
PSCA: More Than Half of Employers Pitch HSAs as Retirement Savings Vehicles
Just more than half of employers position HSAs as retirement savings vehicles, according to a new survey from Plan Sponsor Council of America. Of those employers surveyed, 84.4% make contributions to the HSAs, although a greater percentage of larger employers do so than smaller employers.
HSA Compliance Corner
HSAs and HRAs Incompatible? Not Always!
The rule of thumb is that an employee can't be covered by a Health Reimbursement Arrangement and simultaneously fund a Health Savings Account. But that rule comes with an asterisk.
HSA Industry Best Practices
Why Employers Should Consider a Dedicated HSA Provider
Unfortunately, many employers and benefits brokers lump the HSA offering alongside the FSA and the HRA in an alphabet soup of health benefit offerings. Everything is presented on the same shelf with little attention paid to the very important differences. It’s no wonder employees are confused. The key to improving employee understanding of the HSA is to uncouple it from these other accounts and ensure it is offered by a qualified administrator with a singular HSA focus.
The HSA Market
Coronavirus Influencing Future Health Benefit Plan Design
More employers are linking health care with workforce strategy, according to the Business Group on Health’s 2021 survey. An exponential growth in virtual care is one of the major trends identified in the survey. The survey also reveals a growing interest in direct primary care.
Employee Benefits Offered vs. Used: What's the Difference?
Understanding the difference between awareness and utilization of benefits can help employers dig deeper into which benefits they should focus their attention on. According to research by Fidelity, HSAs, telemedicine and parental leave need to actually be utilized to improve well-being.
Here's Why So Few People Use the Best Tax Break on the Books
Everybody likes saving money on their taxes. That makes it somewhat surprising that one of the best and biggest tax breaks currently allowed under the Internal Revenue Code isn't much more popular than it is. That tax break comes from HSAs. Here's the biggest reasons why HSAs don't get used.
Rethinking HSAs
A survey released this month from Further found 65% of consumers report leveraging their HSA as a spending resource, with 23% stating they use their account equally for saving and spending. Yet, more than two-thirds of employers associate HSAs with savings only, suggesting a gap in how employers are positioning these accounts compared with how employees are using them.
HSAs & Retirement
Health Care Costs in Retirement Might Make You Reconsider an HSA
Fidelity has once again come out with its annual estimate of how much it will cost to cover health care in retirement, and it’s a doozy—$295,000 for an average 65-year old couple retiring in 2020—an all-time high. HSAs help families save for their health care expenses and can be used to pay for current health expenses or invested and then used to cover future expenses, such as those in retirement.
Are HSAs Ready for Retirement?
Employers remain concerned about how to best explain HSA benefits to employees—employee education topped the list of HSA concerns for the second year in a row, though the percentage indicating so did drop five points this year to just more than half of respondents. While the top education priority for nearly half of survey respondents is explaining the HSA tax preferences, 20% target contribution limits as the primary goal.
Millions of Americans Are Missing a Golden Opportunity for Retirement Savings
Saving for retirement can be a huge financial challenge, especially when out-of-pocket healthcare costs alone could add up to as much as $325,000 for some senior couples. The good news is, a number of tax-advantaged accounts help make saving easier. So what is the account most Americans are overlooking? It's a health savings account.
Don't Let IRMAA Crash Your Retirement Party
Most people don't know IRMAA until they retire. Then, it's too late to prepare for her influence over your finances. An HSA can help you avoid IRMAA in two distinct ways. But these strategies work only if you haven't retired yet.
Maximizing Your HSA
Making the Most of Health Savings Accounts During COVID-19
As COVID-19 sweeps across the globe, we know now more than ever our health is at risk and that we may experience unexpected medical expenses. What you may not know is that an HSA could help and that The CARES Act, recently passed by Congress, offers extra assistance for people using one.
Consumer-Driven Health Care
GoodRx: These Are the Most Expensive Drugs in the U.S.
GoodRx has released its latest list of the most expensive drugs in America, with orphan drugs and therapies for rare conditions continuing to top the ranking. The most expensive drug as of July is Myalept, an orphan drug that treats leptin deficiency in patients who have generalized lipodystrophy, which is a genetic disorder where a patient has an almost total lack of body fat.