HSA News for June 28, 2021
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
After ACA’s Third Supreme Court Challenge, Voters Remain Divided on 2010 Law
Since the Affordable Care Act went into effect in 2010, it has survived three Supreme Court challenges. Along with the lawsuits, there is another constant feature: voters’ partisan views of the landmark health law. New polling indicates 54 percent of U.S. voters either strongly or somewhat approve of the ACA, while 37 percent oppose it. Those figures are in line with longstanding trends.
Biden Announces Bipartisan Deal on Infrastructure
On June 24, President Biden announced he'd reached an infrastructure deal with a group of Republican and Democratic senators, saying both sides gave up some things they wanted to get a rare accord in a bitterly divided Washington, D.C.
The Infrastructure Deal Bodes Well for Democrats' Health Policy Goals
Health policies aren’t part of the bipartisan infrastructure agreement President Biden and a group of senators announced June 24. But the deal did move the ball forward for Democrats on their quest to further expand health coverage and lower drug prices: Now they can push top health priorities in a separate, partisan package later this year.
Schumer Backing Plan to Add Dental, Vision and Hearing Coverage to Medicare
Senate Majority Leader Charles Schumer (D-NY) threw his support behind a push, led by Sen. Bernie Sanders (I-VT), to add dental, vision and hearing coverage to Medicare. Schumer made the case for expanding Medicare coverage noting the "more serious medical problems" a lack of coverage causes.
HSA Studies & Analysis
2020 Devenir & HSA Council Demographic Survey
A new report from Devenir estimates that the 30 million Health Savings Accounts as of December 31st, 2020 helped cover 63 million people. Younger consumers have embraced HSAs, with almost 1 in 5 Americans in their 30s having an HSA. HSAs are being utilized in every state and territory of the country. In some states, as much as 77% of the privately insured population is covered by an HSA.
Devenir's Credit Union HSA Update: 3/31/2021
Devenir finds that as of March 31, 2021, total HSA assets held at credit unions totaled $2.08 billion, up 11.8% year-over-year. There were 866 credit unions holding HSA assets (17% of credit unions), up from 844 credit unions three years ago. Devenir estimates the average HSA balance at a credit union is $2,859, up from $2,835 at the end of 2020.
HSA Compliance Corner
HSA Rules Place Veterans Squarely in the Cross Hairs
Veterans who receive preventive care at a VA facility aren’t disqualified from funding a Health Savings Account, since insurers are permitted – and sometimes required – to provide first-dollar (no deductible) care for these services. But other care received from a VA provider is disqualifying. The patient can’t fund her account for the three months following the treatment.
HSA Industry News
BMO Harris Bank and Lively Partner to Offer Personalized HSA Experience
Lively has announced partnering with BMO Harris Bank to bring a modern HSA experience to eligible individual BMO customers and commercial banking clients, making HSA arrangements for their employees and commercial customers through a new referral agreement.
HSA Industry Best Practices
The Engagement Imperative: Driving HSA Adoption
Your employees’ wellbeing—and your benefits return on investment—will naturally improve as more individuals enroll in your HSA program. That’s why success requires smart engagement at three critical moments: (1) new employee onboarding; (2) qualifying life events; and (3) the annual open enrollment period. The good news is that there are tools to help benefits professionals achieve more with less.
7 Ways to Optimize Health Benefits Programs
HSA Bank issued its latest white paper which offers guidance for businesses to steer their employees toward better decisions about their health plans. Seven key strategies are identified to create a strong benefits program to help employees confidently engage in their health decisions, which can lead to better health outcomes and retirement readiness.
Health vs. Financial Decision Making
Health care decisions are financial decisions, and the right tools, communications and advice can help employees make the right choices. Employees who are savvy with both health and savings behaviors have better HSA behaviors—they contribute more and invest their HSA dollars, according to leaders at Fidelity.
The HSA Market
Government Health Care is Overtaking Private Coverage
The United States is nearing a momentous tipping point: More people getting health care coverage through a government plan than through the private sector. Incremental enhancements to existing government plans are more likely than a huge new program along the lines of Medicare for all, which would completely replace private health insurance with a government plan covering everybody.
Workplace Wellness Programs Are Big Business. They Might Not Work.
“Workplace wellness” programs have been enthusiastically embraced as a potentially cost-effective way to promote healthy diets, regular exercise and other behaviors that help keep such diseases in check. But a new study didn’t find any substantial effects on employment outcomes (such as fewer sick days), health spending or objective health measures beyond some improvements in self-reported health behaviors.
HSAs & Retirement
Retirement Confidence Surges for 401k Participants in Wake of Pandemic
According to a new survey from Schwab Retirement Plan Services, 38% of participants said HSAs are a "must-have" benefit, growing from 32% in 2020. 79% have access to an HSA at work, and 49% use it. More participants are also using HSAs to save for healthcare expenses in retirement; 54% in 2021 compared with 41% in 2020.
Should I Buy a Bunch of Store Gift Cards to Fund My Retirement?
Most HSA owners have access to an investment platform. And as they build cash balances in their HSA, they should look at investing not as a risky game of chance in which they may lose money over the short term, but rather than as the only way to avoid losing the future purchasing power of their account balances.
Maximizing Your HSA
What Is an HSA and Why Do You Need One?
If you qualify, an HSA could help you to offset the cost of healthcare. An HSA provides a triple tax break — you can contribute to it with pre-tax income, your savings grow tax-free, and you can use funds for qualified medical expenses tax-free. Contributions to an HSA never expire and you can keep the account through retirement and use it as an extra savings account. Here's what an HSA is and how it works.
How to Harness Your HSA’s Superpowers
HSAs have hidden superpowers that make them a great way for some people to create a tax-free pot of money for retirement or other long-term goals. In the right circumstances, you can even use an HSA to help your young adult children start saving for their futures. You can still benefit from an HSA even if you have to spend some of the money along the way.
Consumer-Driven Health Care
HSA vs. FSA: What’s the Difference?
FSAs and HSAs let you save money to spend later on medical and healthcare expenses that aren’t covered by your insurance plan. Whereas both can be great ways to pay for healthcare using pretax money, that’s where the similarities end. You can’t contribute to an FSA and an HSA simultaneously. So, when it’s time for open enrollment, you need to choose the medical savings account that will best help you survive rising healthcare costs. Read on to learn about the pros and cons of these accounts.