HSA News for March 29, 2021
HSA News is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Can You Use Your FSA and HSA to Buy Masks? The IRS Just Quietly Changed the Rules
The IRS announced on March 26 that amounts paid toward personal protective equipment for “the primary purpose of preventing the spread” of COVID-19 are eligible to be paid or reimbursed through health FSAs, HSAs and HRAs for expenses incurred retroactive to January 2020.
States Are Eyeing Public Option Health Plans. Many Obstacles Stand in the Way.
This year, Washington became the first state to offer a public option. Several other states may be close behind. Advocates and lawmakers in Colorado, Oregon, Nevada, Connecticut, and New Mexico are exploring public option proposals of their own. The idea is to provide consumers with a lower-cost option that can also compete with private health plans and hopefully drive prices down.
HSA Compliance Corner
Till Death Do You and Your Employer Contribution to Your HSA Part?
Calculating the maximum contribution when an HSA owner loses their eligibility mid-year remains the same, regardless of the reason for the loss of eligibility. The fact that the same account passes from the late worker to their spouse extends the window to fund the account, which reduces the amount of what otherwise would be an excess contribution.
Should Supplements and Exercise Equipment Be Qualified Expenses?
The federal tax code doesn't allow taxpayers to use their HSA or FSA dollars tax-free to pay for exercise equipment and nutritional supplements that help Americans maintain their good health. Should it?
Industry Best Practices
The Importance of Educating Employers on HSA Program FICA Savings
Employers are often unaware or misinformed about the potential FICA tax savings they’re leaving on the table by offering an HSA program. Now more than ever, employers need to understand the direct financial benefit they stand to earn through FICA tax savings through an HSA program.
Employers: Looking to Incentivize the COVID-19 Vaccine? A Special HSA Contribution Could Be an Option
If your organization is planning to incentivize vaccine participation, it’s worthwhile to consider a special one-time HSA contribution. An employer HSA contribution offers several tax advantages compared to other incentive options like a cash bonus or gift cards.
The HSA Market
7 Stakeholders Changing the HSA Landscape
According to a new report from Aite Group, the competitive landscape for HSAs is getting more crowded, as new players “step into the HSA market, raising the visibility of these accounts." Aite identified six interlinking stakeholders that are already working together to service HSAs, but may increasingly be competing with each other to offer them.
Tax-Advantaged Benefits: What's Working, What's Not?
COVID-19 has made benefit offerings a focal point to help workers navigate health care, mental health and family challenges. One subset of employee benefits that doesn’t always get the spotlight are tax-advantaged benefits. Let’s take a deeper dive into these tax-advantaged benefits and see what’s working and what’s not.
Virginia SCC Encourages Virginians to Understand HSAs
The Virginia State Corporation Commission's Bureau of Insurance issued a news release on March 26 encouraging all Virginians enrolled in an HSA-qualified high-deductible health insurance plan to understand the potential benefits of opening an HSA.
Consumer-Driven Health Care
Online Ads Increased Consumer Awareness of Price Transparency, but Little Action
Consumers often seem oblivious to price-transparency tools that can help them estimate prices before receiving services. But a new study concluded that concluded that the limited success of price transparency tools “is driven by structural factors that limit consumers’ ability to use health care price information” rather than unawareness of price transparency tools.
HDHPs Have Limited Effect on Spending Growth, NBER Study Finds
High-deductible health plans have only a limited effect in health care spending growth over time, according to a study from the National Bureau of Economic Research. The report found that the only statistically significant case of lower growth associated with HDHPs is found with less cost-effective drugs.