HSA News for August 31, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Meadows 'Not Optimistic' About Quick End to Stalemate on Coronavirus Deal
On August 26, White House chief of staff Mark Meadows warned he did not expect a quick breakthrough on stalled coronavirus relief talks, floating the possibility that they could drag into an end-of-September government funding fight. Meadows said he hadn't had any recent conversations with Speaker Nancy Pelosi (D-CA) beyond his staff reaching out to hers on August 25.
Democrats Offer Lower Price Tag for COVID-19 Aid but Stalemate Persists
Democrats and the Trump administration made little to no progress August 27 during renewed negotiations over a COVID-19 relief package, as the two sides remain far apart on hundreds of billions of dollars in emergency aid. Speaker Nancy Pelosi (D-CA) said she offered White House chief of staff Mark Meadows a concession by proposing a $2.2 trillion price tag for the entire package, down from the Democrats' most recent demand of $2.4 trillion floated earlier this month. Meadows, however, didn't bite, Pelosi said, leaving negotiators where they've been for more than a month: at an impasse.
Pelosi Slams GOP, Says $1.3 Trillion in Coronavirus Relief Not Enough
Speaker Nancy Pelosi (D-CA) rejected a White House offer for a $1.3 trillion coronavirus relief bill on August 28, saying the latest proposal from the GOP falls well short of what is needed to help Americans weather the fallout from the COVID-19 pandemic.
HSA Studies & Analysis
Devenir: Top 20 HSA Providers Average Deposit Rate Update
Since Devenir's last update, average deposit rates for the top 20 HSA providers in the marketplace have remained fairly steady with only a slight decline for both the one-thousand and ten-thousand dollar balance levels.
Consumers Are Still Confused About Health Plans and Savings
There’s often a disconnect between employees and their benefits, according to HSA Bank’s 2020 Health & Wealth Index, which found many consumers aren’t familiar enough with key aspects of their health plans, aren’t planning adequately for retirement and are worried about managing their future health needs.
The HSA Market
Employers Expect Healthcare Costs to Jump 5% in 2021 Amid Coronavirus Pandemic
Large employers expect their healthcare benefit costs will surpass $15,000 per employee in 2021, although the coronavirus pandemic has many organizations questioning what the total impact will be on their overall costs, according to new data from the Business Group on Health’s annual survey. The total cost of health benefits is expected to rise 5.3% in 2021, taking cost management initiatives into account.
Liberate the Health Spending Accounts!
The downside to FSAs is that if you do not use all that money before the end of the calendar year, you lose it. The money goes back to the employer who can use it in the FSA or to help with the administrative costs of the FSA. But there is another health care savings vehicle that is less widely used, but could be a significant tool for savings and covering medical expenses--the health savings account.
New FinFit Benefit Lets Employers Contribute to Employee Saving Accounts
FinFit has debuted an employee savings account program that allows employers to make a contribution towards their savings of up to 100%, giving employers a greater opportunity to be instrumental in their employees’ financial well-being. FinFit is launching a mobile-first banking solution that will include savings and checking accounts, round-up opportunities, automated savings programs, and recommendations for smart saving decisions.
Alphabet’s Verily Plans to Use Big Data to Help Employers Predict Health Insurance Costs
Verily, the Alphabet Inc. life sciences unit, is getting into the health insurance business. The company announced a new subsidiary named Coefficient Insurance that will sell stop-loss insurance. Verily hopes that by adding its data-crunching and technological prowess to the equation, it can help employers more accurately assess what sort of risks they face and, eventually, intervene to better predict and control health-care spending on individual employees.
HSAs & Retirement
This Is the Best Retirement Investing Account, and Most Americans Could Soon Have Access
Saving for retirement is easier if you take advantage of tax breaks the government provides for doing it. But the retirement investment account that provides the most valuable tax savings has historically been available only to a limited number of people. The good news is, that could change for 2020 -- and potentially beyond -- if Congress takes action.
Ditch Your Retirement Partner With an HSA
HSAs are increasingly bridging the divide between two form of employee benefits: medical coverage and retirement savings. That's because these flexible accounts can provide both immediate and long-term tax benefits when withdrawals reimburse qualified health-related expenses. Let's look at how HSAs compare to traditional retirement plans to fund medical and other health expenses in retirement.
Maximizing Your HSA
Under CARES Act, Tax-Sheltered HSAs Are Even More Useful Now—How to Make the Most of Them
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,” says Juan Carlos Cruz, founder of Britewater Financial Group in Brooklyn, N.Y. 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.
Can't Pay Part B Premium if Deducted from Social Security Check? Not True!
You've enrolled in Medicare. You're Part B premium is deducted monthly from your Social Security check. You funded your HSA and built your balances to reimburse qualified expenses in retirement. You know that Medicare premiums are qualified expenses. Do you lose the opportunity to pay your Part B premium tax-free if it's deducted from your Social Security check? Good news: No!
Consumer-Driven Health Care
How to Finance Medical Expenses
Financing medical expenses can be tough. Right in the midst of the stress of a health issue, you have to wonder how you will pay for the care you need. In fact, millions of Americans are one medical emergency away from financial ruin. If you have experienced a medical issue and wonder how to finance medical expenses, read on to find out what routes you could take.
Survey: Health Insurers Need to Bridge Communication Gap With Members
A survey from HealthSparq reveals that payers need to up their game if they want to keep their members engaged. Nowhere is that more true than the way they reach out to their members and how frequently. The study reveals that email is the most popular medium for people to get updates from their health plan. Despite this, only 38% said they get an email from their health plans one or more times per year.