HSA News for March 8, 2021
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Senate Approves Sweeping Coronavirus Measure in Partisan Vote
On March 6, the Senate approved a sweeping coronavirus relief bill on a strictly party-line vote after a marathon session. The package provides another round of stimulus checks, aid for state and local governments, and more help for small businesses and schools. The party-line vote is a significant break from the previous five coronavirus bills, each of which passed with bipartisan support.
House to Vote on Revised COVID-19 Bill on March 9
The House will vote on the Senate-amended $1.9 trillion coronavirus relief package on March 9, before sending it to President Biden's desk for his signature. House Majority Leader Steny Hoyer (D-MD) made the announcement on Saturday afternoon shortly after the Senate passed the mammoth relief bill.
Congressional Democrats Gear Up for Public Option Debate in Next Legislative Package
Some Democratic lawmakers are pushing to include a public health insurance option in a future budget reconciliation bill that would require only a simple majority to pass. Aides are confident they can win support from both progressive and conservative Democrats, but analysts predict that they’ll face a “narrow path to success.”
Rep. Chip Roy Introduces Bill to Give Veterans Increase Healthcare Access Outside the VA System
Rep. Chip Roy (R-TX) introduced a bill on March 2 to have the Department of Veterans Affairs establish a pilot program that will create veteran health savings accounts to allow veterans to receive primary care furnished under non-Department direct primary care service arrangements.
HSA Studies & Analysis
Devenir: HSA Investment Assets Soar to $23.8 billion, Up 52% In 2020
Devenir found that the number of HSAs now exceeds 30 million, holding an estimated $82.2 billion in assets at the end of 2020, a 25% increase year-over-year. HSA investments soared to $23.8 billion, up 52% year-over-year. Almost $42 billion was contributed to HSAs in 2020.
HSA Compliance Corner
Health Insurers Have to Cover COVID-19 Tests for Asymptomatic People, CMS Says
The Centers for Medicare & Medicaid Services issued guidance on February 26 that requires group health plans to waive cost-sharing for COVID-19 testing even if a person doesn't have symptoms or a suspected exposure. The guidance clarifies that medical screening criteria cannot be used to deny coverage for COVID-19 tests for asymptomatic members or those without a known exposure.
HSA Best Practices
It's a Match! An Employer Strategy That Helps Company and Workers
If you're an employer (or advisor) and committed to making your (or your client's) HSA program a success, consider incorporating a matching contribution program. When employers match employee contributions, employees' account balances grow more quickly and both the employer and employee pay lower payroll taxes.
HSAs & Retirement
Don’t Let Medical Bills Break Your Employees’ Retirement Savings
Medical bills can threaten to break the bank in retirement, but employers can ensure their workforce is prepared for unexpected expenses by encouraging HSA participation. The average cost of medical bills during retirement runs between $140,000 to $190,000, according to a survey by Willis Towers Watson. Future retirees can’t expect Medicare to cover all those expenses; much of it will come out-of-pocket.
Same Tax Treatment for HSA, 401(k) Contributions? No. Read the Fine Print.
You may have heard that contributions to both a Health Savings Account and a traditional 401(k) (or similar employer-based retirement) plan are tax-free. But this simple rule-of-thumb statement fails to acknowledge a key difference between the two accounts--withdrawals from an HSA for qualified medical expenses aren't included in taxable income.
How to Retire a Millionaire Without a 401(k)
It’s possible to retire a millionaire even if you don’t have a 401(k) plan. Good alternatives include traditional and Roth IRAs and health savings accounts. An HSA can be an undercover way to boost your retirement savings. While HSAs are intended to pay for healthcare expenses, they can be a valuable source of income once you retire.
Maximizing Your HSA
HSA Hack: Delay Reimbursement, Cash in Later
Savvy Health Savings Account owners are taking advantage of a “hack” that brings even more value and flexibility. You don’t have to reimburse yourself for expenses right away. In fact, there is no deadline. So, you can effectively “bank” your receipts and save them to pay yourself back down the road.
Saving for Medical Expenses With an HSA
If you’re eligible for an HSA plan and have the extra cash needed to make contributions, it can be a highly useful financial tool that provides funds for medical care, solid tax benefits and a potential retirement savings feature. But many people need to transition from viewing HSAs as a go-to source for medical costs now to treating it like a retirement account.
The Importance of HSAs in Saving for Future Health Care Needs Can’t Be Underestimated
The future health care savings opportunities that an HSA offers is like no other and something to fully maximize in 2021. HSAs offer the flexibility to save and invest funds for years to come and need to be repositioned as a long-term health savings and investment tool. Employees should be encouraged to start investing within their HSA to save for retirement, similar to their 401(k).
Consumer-Driven Health Care
Is Health Care Shoppable?
This analysis highlights the influence that referring physicians have over where patients receive care. Rather than price shopping for lower-limb MRI scans, patients appear to receive care at the usual locations to which their physician traditionally refers patients. This key finding underscores how important physician advice is to patient decision-making.
Online Advertising Increased New Hampshire Residents’ Use Of Provider Price Tool But Not Use Of Lower-Price Providers
New Hampshire launched a large online advertising campaign to increase consumers’ awareness about insurer-specific negotiated price information available on its public price transparency website. The campaign led to a more than 600 percent increase in visits to the website but did not translate to increased use of lower-price providers.