HSA News for February 22, 2021
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Biden Re-Opens Federal Health Insurance Marketplace for 3 Months
President Joe Biden reopened the federal health insurance marketplace on February 15 for three months, citing the importance of access to health care when more than 1 out of every 12 Americans has been infected with the coronavirus.
Senate Democrats Unveil Health Care Proposal With Public Option
Sens. Michael Bennet (D-CO) and Tim Kaine (D-VA) released their version of a public option health care plan on February 17, which would create a government-run health care plan on the Affordable Care Act exchanges to compete with plans offered by private insurers with the hope of driving down costs.
Democrats Plan Crackdown on Rising Drug Costs
Democrats are hoping 2021 will be the year they accomplish their long-held goal of reining in rising prescription drug costs by allowing the government to negotiate directly with pharmaceutical companies.
Democrats think they have a chance of getting it done with control of the White House and Congress. The new effort could be part of a second budget reconciliation package later this year.
HSA Studies & Analysis
Pre-Pandemic Trends Show High HSA Engagement: EBRI
According to the Employee Benefits Research Institute, HSA account owners who got a contribution from their employer had higher total contributions in 2019, setting aside $2,846, compared to $2,455 saved by people who are doing it on their own. They were also more likely to have other investments in their HSAs (9% versus 7%) but more likely to take distributions, and larger ones, as well.
HSA Compliance Corner
Treated at Your Company's On-site Clinic for Free? It May Cost You Dearly!
You may be fortunate enough to work for a company with an onsite clinic that provides convenient, low-cost or no-cost care for simple conditions. Or you may work for a medical provider who offers no-cost or low-cost services as a professional courtesy. Unfortunately, these arrangements may disqualify you from opening and funding a Health Savings Account.
HSA Industry Best Practices
HSAs and Why You Should Change the Retirement Strategy Story
Continuing to invest and prepare for retirement the same way we did decades ago may not be enough to pay for healthcare costs in retirement. Fortunately, there is a way you can help employees build wealth and properly prepare for retirement, and it’s something you may already be offering: the Health Savings Account. It can actually be a better retirement-planning tool than a 401(k) or IRA.
HSAs & Retirement
How to Make an HSA Part of Your Retirement Plan
Health Savings Accounts help you set aside money to pay for qualified medical expenses, but did you know they can also be a great tool for retirement planning? You can invest money stashed in an HSA in mutual funds and stocks, plus it offers valuable tax benefits—all of which make HSAs an ideal way to save up for inevitable medical expenses in retirement.
How to Fund Your HSA and 401(k)
Is it possible that workers are reducing how much they contribute to their 401(k) in order to contribute to their HSA (per research published by the Employee Benefit Research Institute) because they understand that HSAs have superior tax advantages and can double as retirement savings vehicles?
Are You Prepared for Health Care Costs While in Retirement?
Many Americans don’t feel financially prepared for health care costs in retirement. While cost estimates may seem alarming, it is not all doom and gloom and there are some ways to proactively prepare for the costs of health care while in retirement. One great way to begin budgeting for your health expenses is by contributing to an HSA.
Maximizing Your HSA
How to Invest the Money in Your Health Savings Account
Far too many people forget they can invest the money in their Health Savings Account. If you have an HSA and you set aside money to fund healthcare expenses or your future retirement, then you're easily leaving thousands of dollars on the table by not investing the money in your account.
Changing Your Job = Changing HSA Provider? No, But It Might Make Sense
You usually don't have to transfer your Health Savings Account balance to a new provider when you change jobs or medical coverage. But you might benefit from doing so.
Consumer-Driven Health Care
Surprising Amazon Items You Can Buy With FSA or HSA Cards
As you may know, Amazon accepts FSA or HSA cards as a means of payment on certain eligible health care items — but you might be surprised at what’s included in the mix. At the Amazon FSA/HSA store, you’re not limited to just cold meds and crutches.