HSA News for February 1, 2021
HSA News is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Democrats Ready to Bypass Republicans on COVID-19 Relief Bill
Democrats are moving quickly to lay the groundwork for passing additional coronavirus relief, with or without help from Republicans. Democrats can muscle through a budget resolution, the first step for a coronavirus relief bill, with a simple majority in the House and Senate. Under a plan crystallizing on Capitol Hill, they are hoping to pass it through both chambers next week.
GOP Senators Propose Compromise on COVID-19 Relief
Ten Senate Republicans led by Susan Collins of Maine proposed their own framework on January 31 for a COVID-19 relief package in an apparent attempt to stave off accusations the GOP is unwilling to work with the Biden administration on pandemic aid.
Biden Signs Executive Orders at Furious Pace
President Biden has leaned heavily on executive actions during his first 10 days in office, far outpacing his predecessors as he works to rapidly dismantle Trump administration policies and check off key campaign promises.
Biden Plans to Reopen Obamacare Exchanges in Many States
The Biden administration plans to reopen enrollment in many of the Affordable Care Act marketplaces, both to help those who may have lost health insurance during the pandemic and to offer coverage to those who did not have any and now want it.
HSA Studies & Analysis
51% of U.S. Workforce Enrolled in High-Deductible Health Plans
Fifty-one percent of the workforce nationwide was enrolled in a high-deductible health plan in 2019, according to an analysis by ValuePenguin. South Dakota (72%), Connecticut (70%) and Arizona (66%) lead the nation in HDHP enrollment. Hawaii (13%), the District of Columbia (32%) and Mississippi (35%) have the lowest percentages of the workforce enrolled in HDHPs.
HSA Compliance Corner
Reimburse Spouse's Medicare Premiums Tax-free? Only if . . .
Health Savings Account owners can pay not only their own, but also their spouse's Medicare premiums. But there is one caveat in the rule. An account owner can't reimburse a spouse's qualified Medicare premiums until the account owner himself is age 65 or older.
IRS Issues 2020 Version of Publication 502 on Medical and Dental Expenses
The IRS has released an updated version of Publication 502 for the 2020 tax year. Publication 502 provides valuable guidance on what qualifies as a medical expense under Internal Revenue Code Sec. 213(d), and thus helps identify the expenses that may be reimbursed or paid by health FSAs, HSAs, or HRAs.
HSA Industry News
KrowdFit Announces Wellness-Driven HSA Allowing Employers to Dynamically Load HSA Contributions Tied to Healthy Lifestyles
KrowdFit announced that its enterprise wellness rewards program has launched a wellness add-on to benefit plans powered by WEX, designed to tie employer HSA contributions to employees achieving daily health goals.
The HSA Market
Voya Survey Finds One-Third of American Workers Don’t Understand the Benefits They Selected During Open Enrollment
Voya Financial, Inc. announced new findings from a consumer survey revealing that 35% of employed individuals report not fully understanding any of the employee benefits they enrolled in during their most recent open enrollment period. This rises among younger workers, with 54% of millennials reporting they don’t understand their benefit selections.
HSAs & Retirement
3 Scary Healthcare Facts That a Retirement HSA Could Remedy
A retirement Health Savings Account won't solve all your financial problems in your senior years. But it does address one of the biggest sources of financial stress for retirees, and that's future healthcare costs. If you aren't worried about retirement healthcare expenses yet, take a look at these three sobering facts.
7 Ways to Save for Retirement Without a 401(k)
An HSA is one of the most tax-friendly savings tools available as long as it’s used for qualified medical expenses. While you can’t contribute as much to an HSA as you can to a 401(k), for those who qualify, it can make a solid addition to your effort to save money for health care costs during retirement.
Don't Even Think of Retiring Until You Do This
Many seniors make one big mistake in the course of their retirement planning -- they don't research healthcare costs and save for them accordingly. Many seniors are shocked to learn that Medicare isn't at all free. In fact, there are a number of huge expenses you'll face as a Medicare enrollee.
Maximizing Your HSA
Does Your New Year's Resolution List Include an IRA-to-HSA Rollover?
People eligible to fund a Health Savings Account can transfer some money from an Individual Retirement Account that they own to their Health Savings Account, but only once during their lifetime. If you decide to do that, make sure it is for the right reasons.
Consumer-Driven Health Care
Hospitals Drag Feet on New Regulations to Disclose Costs of Medical Services
Hospitals are now required to disclose the prices they secretly negotiate with insurers. But many are dragging their feet on the new regulations, which were passed under President Donald Trump and could very well stay in place under President Biden.
LA-Based SideCar Health's Low-Cost, Cash Pay Health Insurance Services Is Now Valued at $1 Billion
Meet Sidecar Health, the newest member of the tech industry’s billion dollar healthcare startup club. Sidecar Health’s insurance plans give consumers the ability to pay directly for care — often at steep discounts to the prices that patients would be charged through traditional insurance plans.