HSA News for August 3, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
'Progress' but No Deal as Coronavirus Talks Head into Next Week
Trump administration officials and Democratic leaders negotiating a new coronavirus relief package said they made "progress" during a rare Saturday meeting but aren't yet close to a deal. Treasury Secretary Steven Mnuchin added that the meeting, which at more than three hours was the longest yet for negotiators, was the "most productive we've had to date."
Senate Rejects Dueling Coronavirus Bills as Unemployment Cliff Looms
The Senate rejected two competing proposals for coronavirus relief on July 30 as the deadline for extending enhanced unemployment benefits looms and Congress struggles to break an impasse over a fifth stimulus bill. The floor drama comes as the $600 federal boost to unemployment benefits passed as part of the March bill is set to expire on July 31 with no consensus in Congress about how to replace it.
Rand Paul Proposes Expanding HSAs for Every American
Sen. Rand Paul (R-KY) introduced legislation on July 31 that would expand HSAs for all Americans.
Paul introduced S. 4367, the Health Savings Accounts for All Act of 2020. The legislation would eliminate contribution limits for HSAs and allow more Americans to qualify for HSAs.
Democrats Fend Off Attempts to Back Medicare for All in Platform
Democrats rejected efforts to amend the party’s platform to show support for Medicare for All and legalizing marijuana, as they moved the document closer to adoption by delegates to next month’s convention. The document, approved July 27 by the party’s platform committee, aligns closely with presumptive nominee Joe Biden’s campaign proposals.
HSA Compliance Corner
Proposed Direct Primary Care Regulations Threaten HSAs
The President directed the IRS to update its rules to allow for direct primary care to be treated as a medical expense for tax purposes. If finalized, this regulation poses a significant risk to the direct primary care movement. Specifically, the regulation is drafted in a way that would not allow an individual covered by a direct primary care arrangement to participate in an HSA.
HSA Industry News
Transamerica Offers Suite of Health Savings, Spending Accounts
Transamerica has expanded its workplace benefits solutions by offering HSAs, HRAs, FSAs (including limited purpose and dependent care FSAs), and qualified transportation accounts. The Transamerica HSA, powered by WEX, is meant to emphasize the impact a long-term investment HSA strategy can have on one’s retirement readiness.
DriveWeallth Teams With MotivHealth to Unite Insurance, HSAs on One Interface
DriveWealth announced a partnership with MotivHealth that allows customers to view health insurance claims, manage their HSA and make trades with their HSA all from the same interface. DriveWealth’s patent-pending Fracker® technology enables real-time fractional share investing, which opens up new options for building a diversified portfolio in an HSA.
The HSA Market
Report: HSA-Eligible Enrollees More Than Double as Deductibles Rise
A recent study has found that health plan deductibles rose across the board between 2013 and 2018, with PPO plans seeing the largest increase and HSA-eligible plans seeing the smallest increase. The researchers also found that the number of enrollees participating in HSA-eligible plans more than doubled in those five years, from 4% to 10%.
HSAs & Retirement
Medicare Premiums and Prescription Drugs Come at a Shockingly Large Cost to Retirees
Unfortunately, because your medical care needs may increase as you age, you'll likely find yourself coping with increased healthcare expenses later in life. Many seniors simply aren't aware of how much these expenses add up to -- especially if they believe the myth that Medicare offers comprehensive coverage on its own without supplementary insurance.
Maximizing Your HSA
HSAs Can Be Used for More Than Just Medical Expenses
HSAs can be used for more than just medical expenses, but for retirement and investments as well.
Consumer-Driven Health Care
Commercial High Deductible Plans May Not Impact Member Outcomes
Contrary to expectations, there may not be a correlation between deductible costs and member outcomes for commercial high deductible plans, according to a study published in JAMA Open Network. When the researchers compared the two groups, they found that there were no significant differences in healthcare spending, even for those with diabetes.
Instead of Skipping Medical Care, Bargain for a Better Price
Millions of people forgo needed medical attention — doctor visits, surgeries, prescriptions and testing — because they either lack insurance or the cost of using their policies is too great. It’s also complicated, a world of bewildering forms and websites, and seemingly unexplained denials of payment. Before you delay care, consider ways you may be able to reduce your costs.