HSA News for July 5, 2021
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Bipartisan Spending Deal Meets Fresh Resistance from Key Democrats
The bipartisan infrastructure deal endorsed by President Biden is facing fresh skepticism from key Senate Democrats who are concerned about plans to pay for the $973 billion package. Two major financing mechanisms for the spending proposal are meeting resistance from a group of Democratic senators who say higher corporate tax rates should be the primary revenue source.
Progressives Ramp Up Medicare Expansion Push in Congress
Progressives are ramping up their push to expand Medicare in an upcoming legislative package, with the goal of lowering the eligibility age and adding new benefits. The Congressional Progressive Caucus made its case to White House counselor Steve Ricchetti in a meeting on June 29, saying they want eligibility to kick in at 60 instead of 65 and coverage extended to dental, vision and hearing.
HSA Studies & Analysis
ABA Podcast: The Health of Savings in HSAs
On the latest episode of the ABA Banking Journal Podcast, Eric Remjeske of Devenir Research and Kevin McKechnie of the ABA HSA Council discuss new research findings for HSAs and discuss further details from the research — including why HSAs are popular in states like Utah and Alaska but less so in Hawaii and Mississippi — as well as the latest policy and industry trends with HSAs.
HSA Compliance Corner
Is This Student Disqualified from Funding an HSA?
Student insurance generally doesn't make the list of common disqualifying coverage because it's not commonly required or purchased when a student is covered on a parent's medical plan. But it's problematic if a student purchases it and the plan reimburses any non-preventive care before the patient assumes responsibility for at least the first $1,400 of expenses.
The HSA Market
Pandemic Impact: More Participants Seeking Financial Advice
The COVID-19 pandemic has taught people many lessons – including the importance of financial wellness, according to a survey of 401(k) participants by Schwab Retirement Plan Services. 48 percent of respondents plan to save more in general, 36 percent plan to increase their 401(k) contribution rate, 35 percent plan to invest more outside of their 401(k) plan, and 34 percent plan to pay off debt.
HSAs & Retirement
Too Many Workers Are Missing Out on This Key Retirement Savings Tool
Many people assume that their living costs will go down in retirement. But if there's one expense that's more likely than not to climb, it's healthcare. Even though you may have a nice amount of money in your IRA or 401(k) plan, you may also find that medical bills eat up an uncomfortable chunk of it. Fortunately, there's another cost-effective way to save for your future healthcare expenses--an HSA.
Should You Save for Retirement or Health Care? Actually, You Can Do Both at Once
Retirement planning overlaps with health-care planning more than you might think. Fortunately, you might be able to prepare for both at the same time. Mainstream retirement accounts including 401(k) plans and Roth Individual Retirement Accounts are a big part of the equation. But you also might want to consider Health Savings Accounts.
This Is a Great Way to Supplement Your Social Security Benefits
For the most part, Social Security doesn't pay seniors enough money to live on. Retirees who only have Social Security as an income source often struggle to manage their bills, especially since the program's annual raises have, in recent years, been less than generous. It's for this reason that supplementing your benefits is so important. And an HSA can help you do just that.
Maximizing Your HSA
Your HSA Has Benefits Beyond Healthcare — Here’s How to Put Them to Work
An HSA helps cushion the costs of high deductible health insurance plans. The accounts also have lots of other features that can help you manage your financial future. There are plenty of benefits to middle-class folks who know how to harness them. If you are eligible for an HSA, take the time to set one up.
HSAs: The 7.65% Solution to Additional Tax Savings
Contributions to Health Savings Accounts made through payroll deduction are "pre-tax," meaning that income and payroll taxes are not applied. Although the savings from avoiding the 7.65% payroll tax may not seem like much, the effects add up when multiplied over decades.
Consumer-Driven Health Care
High Deductibles Keeping Chest-Pain Patients Out of the ED?
Patients who switched to a high-deductible health plan were less likely to visit an emergency department for nonspecific chest pain than patients who stayed on a low-deductible plan, a new study shows. An analysis of a national insurance claims database showed that enrollment in HDHPs was linked to a decrease in both ED visits for nonspecific chest pain and hospitalizations during these visits.
CMS Issues Interim Final Rule to Address Surprise and Balance Billing
The Biden administration issued an interim final rule that bans: (1) surprise billing for emergency services; (2) high out-of-network cost-sharing for emergency and non-emergency services; (3) out-of-network charges for ancillary care (such as an anesthesiologist or assistant surgeon) at an in-network facility in all circumstances; and (4) other out-of-network charges without advance notice. The provisions will take effect for plan, policy or contract years beginning on or after January 1, 2022.