HSA News for September 21, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Supreme Court Justice Ruth Bader Ginsburg Dead at 87
Supreme Court Justice and feminist icon Ruth Bader Ginsburg, 87, died of complications from metastatic pancreas cancer on September 18, just weeks ahead of the 2020 presidential election. Ginsburg's death creates a vacancy on the court that could allow President Trump to choose a third Supreme Court justice.
McConnell Says Trump Nominee to Replace Ginsburg Will Get Senate Vote
Senate Majority Leader Mitch McConnell (R-KY) vowed Friday night that Republicans will move to fill the Supreme Court vacancy created by Justice Ruth Bader Ginsburg's death. McConnell’s decision came roughly an hour after news broke that Ginsburg had died at 87, and before President Trump has weighed in on her passing and if he plans to try to fill the seat this year.
Pelosi: House Will Stay in Session Until Agreement is Reached on Coronavirus Relief
Speaker Nancy Pelosi announced that the House will remain in session until the parties have an agreement on another round of emergency coronavirus relief. Pelosi indicated she isn't willing to accept a "skinny" legislative package, but told her troops the chamber's calendar will be extended until an agreement is sealed.
Trump Undercuts GOP, Calls for Bigger COVID-19 Relief Package
President Trump shook up the high-stakes debate over coronavirus relief, undercutting the Republicans' long-held position by urging GOP leaders to go big. Senate Republicans had initially offered a $1.1 trillion package in emergency aid, but subsequently voted on a proposal providing just $650 billion — only $350 billion of it in new funding.
Pelosi: 'Hard to See' Democrats Supporting Less Than $2.2T in COVID-19 Aid
Speaker Nancy Pelosi said that she's hopeful the parties will reach an agreement on the next round of coronavirus relief but suggested Democrats aren't prepared to accept anything less than her last offer — $2.2 trillion — on a deal.
HSA Compliance Corner
HSA Withdrawals Are Tax-Free for Any Expense at 65? Read the Fine Print!
A confusing aspect of HSA compliance is the treatment of withdrawals beginning at age 65. The rules are different at that age (or the age at which you become disabled or die). But you still face a tax liability on distributions made for non-qualified expenses.
Navigating the Perilous Intersection of HSAs and General Health FSAs
Health FSAs and Health Savings Accounts mix about as well as oil and water. That's bad news for new enrollees on HSA-qualified medical coverage, particularly when their or their spouse's general Health FSA plan year overlaps with the medical plan year.
HSA Industry Best Practices
Employer Matching Is Common in 401(k)s – and May Even Be Better in HSAs
Despite similarities between the 401(k) and the HSA, very few organizations adopt a similar contribution strategy. Instead, their approach is more reminiscent of employee pension plans: They seed HSAs with a certain guaranteed amount of funding each year. This strategy fails to tap into the basic behavioral economics principles that make 401(k) matching so successful.
The HSA Market
Massive Increase in HSAs From Recordkeepers, Cerulli Finds
More than 40% of defined contribution plan recordkeepers participated in the HSA market as of 2019, up from 21% just two years earlier. And while contributions to HSAs, along with total balances, are still negligible compared with 401k plans or IRAs, the industry is expected to evolve during the next several years in response to trends emphasizing holistic planning and financial wellness.
HSAs & Retirement
62% of Americans Are Making a Huge Mistake on Retirement Savings
A recent study of more than 1,000 Americans who weren't yet retired found that the majority of those studied are not saving for the healthcare costs they'll likely experience in their later years. In fact, while the research revealed over 71% of people were saving for retirement, just 38.1% said they were saving specifically for healthcare costs.
Maximizing Your HSA
HSA vs HRA: Know the Differences for Open Enrollment
With two similar acronyms, we’re not surprised you might be a little baffled. Let us start off by saying that there are a lot of nuances that may be out there with HRAs. This is mainly due to the fact that they are employer-owned. Another big difference between HRAs and HSAs is how they are funded.
Consumer-Driven Health Care
Many Hospitals Charge More Than Twice What Medicare Pays for the Same Care
Hospitals across the country are charging private insurance companies 2.5 times what they get from Medicare for the same care, according to a new study of hospital prices. In a half-dozen of 49 states in the survey, including West Virginia and Florida, private insurers paid three or more times what Medicare did for overnight inpatient stays and outpatient care.
It Is Possible to Shop for Healthcare Bargains if You Can Access Them
Are you one of the many Americans facing potentially high healthcare costs? If you have a high deductible health plan, or even a medium deductible one; if you are expected to fork over substantial copays for medical care—I’ve got good news for you. There are potentially a lot of healthcare bargains out there, if you’re willing to dig around for them.
Remote Monitoring Is Rapidly Growing — and a New Class of Patient-Consumer Is Driving the Shift
Health care is undergoing a monumental shift toward remote patient monitoring — and a new class of patient-consumer is leading the charge, according to a new report. The transformation — which began years ago as healthy people moved to optimize wellness and people with chronic conditions pushed for more convenient care — has taken on a more permanent tone amid the Covid-19 pandemic.
Missed Vaccines, Skipped Colonoscopies: Preventive Care Plummets
When the coronavirus pandemic hit, Americans vastly scaled back their preventive health care, and there is little sign that this deferred care will be made up. The data, drawn from millions of health insurance claims, shows a consistent pattern, whether it was prostate screenings or contraceptives: Preventive care declined drastically this spring and, as of late June, had not yet recovered to normal levels.