HSA News for June 1, 2021
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Public Option Plan Left Out of Biden Budget Proposal
President Biden’s budget for the next fiscal year leaves out financial plans for a public option, lowering prescription drug costs and Medicare expansion, despite several Democrats’ calls for the administration to prioritize these health care reforms.
Democrats Announce Plan to Begin Crafting Public Option Insurance Bill
Congressional lawmakers are starting the process of crafting a bill that would create a government-run public option health insurance plan. Sen. Patty Murray (D-WA), chair of the Senate Health Committee, and Rep. Frank Pallone (D-NJ), chair of the House Energy and Commerce Committee, issued a public request for information to solicit feedback on different aspects of the bill.
70 percent of House Democrats Pressure Biden to Expand Medicare in American Families Plan
A large coalition of 156 House Democrats, ranging from moderate to progressive, launched a campaign to ramp up pressure on President Biden, calling on him to follow through with a campaign promise to expand Medicare by lowering the eligibility age, decreasing prescription drug costs, and expanding coverage for dental, vision and hearing.
Democrats Promised to Lower Drug Prices, but Plans Are Sputtering
Despite widespread support among Democrats, bringing down drug prices has sputtered, as President Biden left it out of his infrastructure plan and is expected to leave it out of his budget while congressional Democrats remain noncommittal about how they might enact it. The initiative has fallen victim to extremely slim majorities and division among Democrats.
New Bill Aims to Reduce the Financial Burden of a Telehealth Visit
A new bill before Congress, introduced by Senators Steve Daines (R-MT) and Catherine Cortez Masto (D-NV), would permanently extend the telehealth safe harbor in HSA-qualified high deductible health plans that had been included as a temporary provision of the CARES Act, thereby allowing first-dollar coverage for virtual care.
HSA Compliance Corner
Can Your Employer Disqualify an HSA-qualified Medical Plan? Should It?
Your employer offers an HSA-qualified plan. You enroll. You look forward to the benefits of owning an HSA. Can the employer design the benefit to disqualify you from opening and funding an account? Yes. Employers and their benefits advisors must be on guard to spot employee benefits that may disqualify employees enrolled in HSA-qualified coverage from opening and funding an HSA.
The HSA Market
First HRA Council Meeting May Hint at Future of Individual Health Insurance
A new HRA Council held its first meeting on May 21, and the founding member list could give hints about which insurers have the strongest interest in the commercial individual major medical insurance market. Organizers of the group say it will be a non-partisan, nonprofit coalition that will promote awareness of HRAs, help develop HRA standards, share HRA research, and work to shape HRA regulations.
HSAs & Retirement
Americans Expect to Spend 40% of Their Retirement Savings on Healthcare. Are They Right?
Senior living costs can be more expensive than anticipated, so having money in savings could spell the difference between struggling and paying the bills with relative ease. Healthcare is the one expense that's likely to rise during retirement. Not only do health issues tend to emerge with age, but Medicare has gaps that leave seniors on the hook for tremendous out-of-pocket costs.
Maximizing Your HSA
What Is a Health Savings Account?
Many workers are able to reduce their health insurance premiums by signing up for a high-deductible health insurance plan and pairing it with an HSA. Unlike an FSA, which often requires you to use your funds within 15 months or so, the money in your HSA can be rolled over from year to year and be used for future medical care needs, even during retirement. Here's how to decide if an HSA is right for you.
How to Use an HSA to Build Wealth
My cousin has a plan to become a mega-millionaire using his health savings account. Unconventional? Maybe not. An HSA can offer a reliable investment strategy — as long as you use it to your advantage. Let's explore the ins and outs of an HSA and how you might use it to build your nest egg.
It’s Mental Health Awareness Month – Here Are 5 Ways Your HSA Can Support Your Mental Health
The COVID-19 pandemic has had a significant impact on mental health. Physical health challenges and social distancing have been difficult for people of all ages. Many are now looking for care and support, often either for the first time or after many years. While it may not be obvious, HSAs can play a vital role in that process and may be a great companion to your other mental health resources.
Consumer-Driven Health Care
Insurance Lessons that New Grads Probably Never Learned in College
Most of the new college graduates will soon enter the world of full-time work for the first time. But they probably never received instruction on how to evaluate employee benefits. Saving $250, $600 or $1,000 annually in premiums and taxes by choosing the right medical plan is a big deal - particularly early in your career when you're balancing student-loan repayment, a car payment, and a place of your own.
A New Suggestion to Ease the Burden of High Deductibles: Split Them in Two
High deductibles have increasingly become a topic of debate in the U.S., since so many Americans have moved to high deductible health plans. A new study from the University of Wisconsin finds that resetting deductibles to cover six-month periods, rather an annual rate, might save some health plan members an amount that equals from 6%-to-10% of premium costs.