HSA News for April 19, 2021
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Biden Faces Pressure from Pelosi, Sanders Over Whether to Double Down on Obamacare or Expand Medicare
The White House is facing pressure from powerful members of Congress over how to approach its health care priorities in the upcoming spending package, with House Speaker Nancy Pelosi (D-CA) pushing to permanently expand Affordable Care Act premium subsidies and Senate Budget Committee Chairman Bernie Sanders (I-VT) arguing to lower the Medicare eligibility age to 55 or 60.
When Are State Taxes Due? Most (but Not All) States Extended the Filing Deadline to May 17
You have an extra month to file your 2020 federal income tax returns, but taxpayers in some states have another deadline to mind: the deadline to file state income taxes. Most states have followed the lead of the IRS, extending the deadline to file state income taxes to May 17 from April 15. But there are some exceptions.
HSA Studies & Analysis
Voya Research Shows Employees Are Biased Toward HDHPs
Employees are most commonly offered PPOs and HDHPs by their employers. Employees tend to go with the PPO option because it typically has a lower deductible but higher premiums. While it can be a powerful savings vehicle, HDHPs are often overlooked. New research from Voya Financial shows employees have a bias against HDHPs and the reason for that is as simple as marketing.
2020 Credit Union HSA Update
According to the latest NCUA filings, at the end of 2020 credit unions held $1.97 billion in HSA deposits among roughly 695,000 accounts. At the end of 2020, 863 credit unions held HSA assets. Of those 863 credit unions, 79 had over $5 million in HSA deposit assets.
HSA Compliance Corner
“Mr. HSA” Finalizes 2022 HSA Projections
The Health Savings Account contribution limits will increase again for 2022. This is great news for HSA account owners. For HSA-qualified plans, the minimum deductibles will not change for the third year in a row, but the annual out-of-pocket maximums will rise again modestly.
Just Now HSA-Eligible and Must Pro-rate Contributions? Not Necessarily!
FSA grace periods present a speed bump in HSA strategies. You can avoid the implications by exhausting your balances before the end of the 12-month plan year. Otherwise, you're at the mercy of federal tax law, your employer's decisions with respect to extending grace periods temporarily, and, if you employ the Last-Month Rule, your future eligibility.
The Combination Health FSA
Can employers combine a limited purpose health FSA and post-deductible health FSA without affecting employees’ HSA eligibility? Yes. The combination of a limited purpose and post-deductible health FSA is not disqualifying coverage for employees enrolled in an HSA-qualified health insurance plan.
HSA Industry News
WEX to Acquire benefitexpress
WEX has signed a definitive agreement to acquire benefitexpress. The deal adds a complementary suite of solutions to WEX’s health offerings, including employee enrollment and decision support tools for employees, benefits administration and other value-added services.
HSA Industry Best Practices
How to Make Changes That Make a Difference for Your HSA Program
There are several features employers can implement to make a difference in their HSA programs, such as requiring active enrollment, facilitating education with employees and using various tools to increase engagement. According to data by HSA Bank, more than half of all employees choose an incorrect plan and as a result, overpay by $1,300.
Boosting HSA Participation and Engagement
Experts say HSA providers need to provide a lot more education about HSAs. Suggestions for boosting HSA adoption include giving HSA participants a match or seed money, showing employees how much they can save by choosing an HDHP paired with an HSA, and automatically enrolling participants in HSAs and give them the right to opt out.
Selecting an HSA Service Provider
During one of the 2021 PLANSPONSOR HSA Conference panels, Kevin McKechnie said that when selecting an HSA vendor, an employer should look for a provider that allows funds to be automatically deposited into the HSA account through payroll. The HSA provider should also be able to educate participants about the tremendous health care costs they will face in retirement.
The HSA Market
Efforts to Make HSAs More Inclusive
The last session of the 2021 PLANSPONSOR HSA Conference discussed the benefits of expanding HSAs outside of high-deductible health plans and whether any movement is expected in this area in the future. The fact that HSAs are only allowed to be used with HDHPs is constraining others from taking advantage of the benefits.
Health Care Legislation Drives HSA Adoption
The COVID-19 pandemic, resulting legislative changes, and increased awareness of the benefits of HSAs will lead to an even greater surge of employers turning to HSA-eligible HDHPs as a way to increase savings and offer more diversified health care options that cater to individuals looking to balance short-term and long-term upsides.
HSAs & Retirement
HSAs Offer Health Care, Retirement Savings
Health insurance coverage and healthcare costs are among the greatest challenges for self-employed Americans. One avenue that provides for cost containment combined with the opportunity to save for the future is the HSA. With traditional plans, you pay a higher cost whether you use the services or not. An HSA allows you to keep that money if you don’t have to use it.
HSAs Help Owners Overcome the Disadvantages of 401(k)-Only Savings
Many Americans understand the importance of saving for retirement but often overlook the "distribution phase" until they're approaching or into retirement, when their options are limited. Although HSAs are not the only answer to retirement savings, they are an important component to your having more control over your finances and taxes in retirement.
The Role of HSAs in Financial Wellness and Retirement
Experts at the 2021 PLANSPONSOR HSA Conference discussed how employers can maximize HSAs to achieve both financial wellness and retirement security. They suggested that plan sponsors should converge both categories into one and discuss the two during the same season. Providing an HSA benefit offers a bridge strategy for workers in every age demographic.
Maximizing Your HSA
5 Novel Ways to Use Your HSA
HSAs were created in 2003 so that individuals covered by high-deductible health plans could receive tax-preferred treatment of money saved for medical expenses. And yet 18 years later, many people don't make the most of these accounts. Here are some of the lesser-known but important ways to use your HSA.
Consumer-Driven Health Care
A new rule was supposed to force hospitals to reveal their secret prices. But after I spent hours shopping around for an MRI, I learned that not much has changed.
The black box that is the healthcare industry was supposed to open up somewhat on January 1, when a Trump-era regulation took effect requiring US hospitals to reveal the secret prices they negotiate with health insurers for all the procedures, drugs, and healthcare supplies they provide. But four months into 2021, prices largely remain under wraps.
Coding to Hide Health Prices from Web Searches Is Barred by Regulators
Federal regulators said healthcare pricing data that health insurers must post under a new requirement shouldn’t be blocked from web searches, issuing new guidance after The Wall Street Journal reported that hospitals used special coding that shielded such information from Google and other search engines.