HSA News for August 2, 2021
HSA News is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Senators Introduce Bipartisan Infrastructure Bill in Rare Sunday Session
Senators unveiled a $1.2 trillion, eight-year infrastructure bill during a rare Sunday session after negotiators worked through the weekend. The 2,702-page bill is substantially narrower than the multitrillion-dollar plan envisioned by President Biden earlier this year but includes a wide range of funding for roads, bridges, transit, broadband and water.
Schumer: Democrats 'On Track' to Pass Bipartisan Deal, $3.5T Budget
Senate Majority Leader Charles Schumer (D-NY) said during a rare Sunday session that Democrats are "on track" to pass a bipartisan infrastructure agreement and a budget resolution that will tee up a separate $3.5 trillion spending package.
HSA Studies & Analysis
VC and PE investments in HSA and CDH administrators and TPAs
The growth in HSAs has attracted investments from private equity, as well as stimulated M&A activity within the industry, creating consolidation and further opportunities in the market. Additionally, in concert with the boom in fintech investment, there is a significant amount of venture capital and private equity funding of startups trying to take advantage of these opportunities while also closing customer needs not met by current providers.
Compliance Corner
IRS Information Letters Address Substantiation Rules for Health FSA Debit Card Programs
The IRS has released two information letters that address the substantiation rules for health FSA debit card programs. The letters explain that medical expenses must be substantiated with information describing the service or product, the date of service or sale, and the amount of the expense, but some debit card transactions do not provide all of the required information.
HSA Industry News
Equity Bank Tabs Ben Morris to Lead New Healthcare Services Division
Equity Bank announced the hire of Ben Morris to lead its new Healthcare Services division. Morris comes to Equity Bank with over 17 years of experience in consumer directed healthcare. Morris will focus on further expansion of Equity Bank’s business line by providing tax-advantaged accounts like HSAs, FSAs and HRAs to Equity Bank’s small business, commercial and consumer customer base.
HSA Industry Best Practices
8 Ways a Health Savings Account Could Benefit Your Employees
If you currently offer an HDHP to your employees, you may be able to pair it with an HSA. An HSA helps individuals pay for qualified medical expenses, as well as save money for the future, all on a tax-free basis. As an HSA holder since 2006, I’ve seen and experienced the unmatched value of having an HSA. Here are eight things I’ve found most valuable about having an HSA over the past 15 years.
Employer HSA Contributions Benefit Everyone
Did you know that employers can reap the benefits of HSAs as well as their employees? An employer can maximize HSA benefits by setting up a cafeteria plan that allows employees to make pre-tax contributions to their HSAs through payroll deferral. This lowers payroll tax liability and exempts employers from IRS comparability rules. Read more to learn about additional HSA employer benefits.
HSAs & Retirement
Americans Say They Need to Have $500,000 in Savings to Feel Financially Secure, Survey Finds
When asked how much money they need to have saved to consider themselves financially healthy, Americans put the number at $516,433, on average, according to a new report. Although responses varied widely, most said having $500,000 in the bank would be enough to cover bills and expenses, as well as future needs, including some retirement savings, without worry, the report found.
Maximizing Your HSA
The Savings Game: HSAs, Beneficiaries and Tax Liability
If one has a choice regarding whom to select as the beneficiary of their HSA, naming their spouse as the beneficiary is by far the best alternative. It is also important that the spouse understands the advantages of the account.
Consumer-Driven Health Care
Healthcare Out-of-Pocket Spending Rises to $491B
A report from Kalorama Information shows total out-of-pocket healthcare spending by consumers has reached an estimated $491.6 billion in 2021, a 10 percent increase from 2020 with an anticipated increase of 9.9 percent through 2026. Factors that could slow the growth include lower-cost medications, increased use of disease management programs and low premium, high deductible health plans.