HSA News for July 19, 2021
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Democrats Reach Deal on $3.5T Price Tag for Infrastructure Bill
Senate Majority Leader Charles Schumer (D-NY) and Budget Committee Democrats have reached a deal on a $3.5 trillion price tag for a Democratic-only infrastructure package. Schumer said they had reached a deal on the budget resolution which greenlights "budget reconciliation," the process Democrats will use to bypass a GOP filibuster on the infrastructure bill.
Senate Dems Aim to Offer Dental, Hearing and Vision to Medicare as Part of $3.5T Infrastructure Deal
Senate Democrats announced the framework for a $3.5 trillion infrastructure package that will expand Medicare to offer dental, hearing and vision benefits. It is in addition to a $1.2 trillion bipartisan package that addresses several infrastructure priorities.
More Than 2 Million Sign Up During Obamacare Special Enrollment Period
Biden administration officials announced that more than 2 million people have signed up for health insurance during the special enrollment period using both federal and state marketplaces. The new sign-ups pushed the number of Affordable Care Act enrollees to a record high.
HSA Industry News
Alegeus Partners with CAPTRUST to Power Modern HSA Investment Solution
Alegeus selected CAPTRUST Financial Advisors as the registered investment advisor for its modern HSA investment solution. Through this partnership, CAPTRUST will oversee the investment process and select funds to power the fully automated solution within the Alegeus HSA investment experience.
Bend Financial Meets HSA Investing Surge with Expanded, Fully Integrated Investment Offering
Bend Financial announced the expansion of its HSA investment platform to now include a fully integrated investment offering backed by DriveWealth that provides HSA investors seamless access to fractional trading, multiple investment models, exchange-traded funds (ETFs) and a host of other modern features.
HSA Industry Best Practices
Workers Increasingly See Benefits of Auto-Enrollment
According to a survey by Principal, eighty-four percent of workers who have been automatically enrolled into their workplace retirement plan say they are glad that their savings has been jump-started. In fact, they say auto-enrollment has gotten them on the retirement savings path at an earlier age than if they had made the decision on their own. But only one-third of employers offer auto-enrollment.
Change Management, Not “Bribes,” Improves Customer Satisfaction
When I led a CX program in the HSA marketplace, I asked teams what they thought the top drivers of satisfaction were. They were all wrong. Unless you take the time to make your employees aware of the existing experience, desire to improve it, know what to do, have the ability to do it, and reinforce this need, employees won’t be able to target the activities needed to improve the customer experience.
The HSA Market
Biases Impact Financial Health
A recent study by Morningstar examined how financial behavior and biases affect investors and participants, and the results revealed that the majority showed some kind of financial bias. Furthermore, Morningstar says some biases directly contribute to worse financial outcomes, such as poor financial health and lower account balances.
HSAs & Retirement
Health Costs and Savings Remain Top of Mind
American workers continue to be concerned about health care costs and saving in retirement, according to a new survey. Health care costs are already a problem for Americans, and they are only likely to become more of an issue as workers retire. Americans plan to spend 40% of their retirement savings on health care costs. And those younger than 45 expect to spend a larger percentage on health care costs.
Medicare Premiums and Deductibles for 2021: Here's What You Need to Know
Medicare premiums and deductibles change annually. With Part A, you are required to pay a deductible of $1,484 for each benefit period in 2021. The standard premium amount for Medicare Part B is $148.50 per month unless your modified adjusted gross income is above a certain amount, in which case you will face monthly premiums between $207.90-$504.90 depending on your 2019 income tax return.
4 Pieces of Money Advice No One Ever Wants to Hear, but Needs to
The best money advice is decidedly unsexy: invest for the long-term; don't try to time the market; and let your investments compound over many years. When it comes to retirement planning, you should also max out your health savings account. Although the purpose of an HSA is to save money for inevitable healthcare expenses, you can just as easily use your HSA as an investing tool.
Maximizing Your HSA
Understanding Health Savings Accounts
Health savings accounts (HSAs) are specialized savings accounts you can use for current or future healthcare expenses. Your contributions are tax-free. HSAs are a popular savings and medical expense option. You also need an HDHP to use an HSA.
Read on to learn more about this healthcare payment option.
Understanding the Differences Between HSAs and FSAs
HSAs and FSAs are both great tools that can help you save money in taxes and better control your health care costs. But while at a glance they can appear to be very similar, they’re far from the same. Many health care consumers are still confused about what differentiates HSAs from FSAs. Here are eight key differences between the two account types.
Consumer-Driven Health Care
Health Plan Overkill
According to the U.S. Agency for Healthcare Research and Quality’s Medical Expenditure Panel Survey, in 2018, nearly 60% of employees had less than $2,000 in medical claims, and 16% had no claims. For most workers, a high-deductible health plan with lower premiums would be a better choice than a preferred provider organization plan with higher premiums.
CVS Study: How the Pandemic Is Boosting Healthcare Consumerism
The COVID-19 pandemic pushed people to embrace new avenues of care, and take greater control of their own health, according to a new study from CVS Health. The study also found that patients, particularly younger people, are moving away from more traditional avenues of care, such as primary care. Routine care from primary care providers decreased from 62% in 2020 to 56%.