HSA News for May 3, 2021
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
President Biden Makes Case for Sweeping Government Action
President Biden made the case for sweeping government action in an address to a sparsely populated joint session of Congress. Biden laid out an ambitious legislative agenda, touting new legislative proposals to invest a total of $4 trillion to build climate-friendly infrastructure such as roadways and broadband as well as child care and family leave programs.
Democrats Push to Add Drug Pricing, Medicare Measures to Biden Plan
Leading congressional Democrats are pushing to add drug pricing measures and even an expansion of Medicare eligibility to President Biden's American Families Plan after the White House left the proposals out of the $1.8 trillion package.
Bipartisan Thune Bill Would Expand Prevention Services for Chronic Diseases
Sen. John Thune (R-SD) re-introduced bipartisan legislation (S. 1424) to permit HSA-qualified plans to provide chronic disease prevention services to plan enrollees prior to satisfying their plan deductible. The legislation would clarify that preventive care would include any service or item used to treat an individual with a chronic condition if that service or item is low-cost, and there is medical evidence supporting prevention for a chronic condition or to prevent the development of a secondary condition.
HSA Studies & Analysis
How Concerned Should We Be About $0-Balance HSAs?
According to Devenir's 2020 Year-End HSA Report, 20% of Health Savings Accounts (roughly 6 million) had a zero balance at the end of 2020. But the percentage of accounts that aren't funded at a point in time doesn't provide much meaningful information, other than that those owners aren't taking full advantage of the benefits of an HSA. Here are some possible reasons behind this figure.
HSA Compliance Corner
HSA-Qualified Plan Can't Have an Embedded Deductible? Not True!
An embedded deductible protects families when only one family member incurs high claims. HSA-qualified plans can be designed with an embedded deductible. But that individual deductible can't be less than the statutory minimum annual deductible for a family contract ($2,800 in 2021).
HSA Industry News
Fifth Third Bank HSAs Moving to HealthEquity
HealthEquity announced it has entered into a definitive agreement with Fifth Third Bank to transition custodianship of Fifth Third’s HSA portfolio to HealthEquity. The definitive agreement contemplates a transfer of approximately 149,000 current HSA members and their approximately $477.0 million of HSA assets.
The HSA Market
Experts Answer Questions About HSAs
Evolutions and trends with Health Savings Accounts are changing the way employees think about balancing paying for medical expenses while growing their retirement savings. See what experts have to say about the potential evolution of HSAs, including whether we will ever see unbound HSAs offered without high-deductible health insurance plans.
Using HRAs to Improve Health Care Offerings
Health reimbursement arrangements are a trending alternative that provide employers more control of their cash flow related to health care coverage, while still offering benefits to their employees that fit their needs. There are several different types of HRAs that employers can choose from, depending on their business model, cash flow, and employee base.
HSAs & Retirement
How Can HSAs Be Framed as Retirement Savings Vehicles?
It’s important for employers to educate employees about medical costs in retirement. Most employees don’t understand that Medicare doesn’t cover everything. Plan sponsors should emphasize employees’ need to supplement savings. The most successful HSA programs involve employer contributions.
Maximizing Your HSA
Four Secrets to Optimize Your HSA
HSAs have grown to be an important part of the financial picture for many families. So what’s the big deal about HSAs? They are one of the few accounts that have a triple tax advantage. The benefits are so compelling that in most cases you should prioritize contributing to your HSA ahead almost all other savings, except for emergency funds and retirement plan contributions that receive an employer match.
Consumer-Driven Health Care
Drug Prices on Rise—What Consumers Can Do to Save
Finding ways to save on medications is a growing financial priority for many consumers. To help relieve the pain of prescription drug costs, health care advocates recommend reviewing strategies such as comparing savings with and without insurance, considering generics over brand names, trying mail order and larger quantities, and tapping a Health Savings Account.
What Is an Insurance 'Allowable'? How Does It Impact What I Will Pay?
Contracts between health care providers and the insurance plans dictate what the “allowed amount” -- the total amount that is due -- will be as a result of the negotiation between the health care provider and the insurance company. New transparency laws require that the allowed amount for each outpatient service must be given to the patient when asked, prior to services and declared on the explanation of benefits.