HSA News for September 27, 2021
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Pelosi Sets Thursday Vote on Bipartisan Infrastructure Bill
The House will vote Thursday on the Senate-passed bipartisan infrastructure bill, pushing back an originally planned vote for Monday that Democratic moderates had demanded as part of a deal with Speaker Nancy Pelosi (D-CA). Lawmakers will still debate the bill on the House floor on Monday, but the actual vote will be pushed to September 30.
Schumer Announces Senate-House Deal on Tax 'Framework' for $3.5T Package
Senate Majority Leader Charles Schumer (D-NY) announced on September 23 that the Senate, House and White House have reached a deal on a “framework” to pay for the massive human infrastructure spending package they hope to pass this fall under budget reconciliation.
Manchin Fires Warning Shot on Plan to Expand Medicare
Sen. Joe Manchin (D-WV) is firing a warning shot at progressives' hopes of using a sweeping social spending bill to expand Medicare, arguing Democrats should first focus on shoring up the program.
HSA Best Practices
Deploying Contribution Tools to Boost Health Savings Account Balances
As defined-contribution retirement accounts have become the norm, companies have adopted two distinct strategies to boost employee balances: (1) matching contributions, and (2) negative (default) elections. Both strategies are credited with boosting employee engagement and retirement financial readiness. These same two approaches can boost HSA participation and contributions as well.
HSA Investment Options and Best Practices
Focusing employee education on the long-term impact of saving in an HSA, both from an investing and tax perspective, can help employees understand how to get the most from their HSAs and encourage them, when possible, to make the HSA a key element of their overall retirement strategy.
Educate Your Patients About HSA Accounts
As a physician, you often tangle with health insurance coverage issues and work with your staff to communicate resolution strategies to your patients. One healthcare financing tool that many of your patients have little to no knowledge of is an HSA. By utilizing these untaxed funds to pay for deductibles, copayments, coinsurance, prescriptions, and other approved costs, a person can potentially lower their overall healthcare expenses.
The HSA Market
Half Of Americans Overwhelmed By Health Benefit Choices, Study Says
Almost one in seven Americans has absolutely no plan for their future financial and health care needs, new research suggests. For long-term financial goals, nearly three in five are using a 401(k) or other retirement account and 31% are leveraging an HSA. But despite that, nearly three-quarters of Americans admitted they had no clue how 401(k)s, health insurance or HSAs worked when they got their first job.
HSAs & Retirement
This Is the One Retirement Account I Would Recommend to Anyone
Some retirement accounts provide tax savings today, while others are designed to limit your future taxes. If you want both -- tax-deductible contributions now and tax-free withdrawals later -- you have only one option. It's called the Health Savings Account and it's the one retirement account I'd recommend to anyone.
Older Americans Are Missing Out on This Valuable Retirement Savings Plan
Many seniors find that once retirement kicks in, healthcare becomes their greatest monthly expense, surpassing even housing. The good news is that people who save money in an HSA can access tax-free funds to cover medical care during retirement. The bad news is that more than half of older Americans aren't taking advantage of the opportunity to fund an HSA.
How to Use a Tax-Saving Health Savings Account in Retirement
An HSA lets you save money in a tax-advantaged account and then withdraw cash tax-free to pay for qualified medical expenses. Often, the money is used while you're working. But you can also use your HSA in retirement to help lower your out-of-pocket medical costs then. Doing so could help stretch your retirement savings, too.
Maximizing Your HSA
Why You Must Consider Getting an HSA
What many Americans don’t know is that if you have a regular paycheck, you can create your own tax-free bank account for medical expenses. All you have to do is get yourself an HSA. It offers tax-free benefits as long as you make purchases related to health and medical issues.
Be Familiar With Values of Health Savings Accounts
Since 2004 HSAs have been available to help save and pay for health care costs. They work with high deductible health insurance and are known for their triple tax benefits. Contributions can be deducted from income. Earnings are tax deferred while in the HSA account and, if HSA funds are used for qualified medical expenses, both the contributions and earnings are tax-free when distributed. Here are 5 other benefits of an HSA.
The Misunderstood Health Savings Account
Moving closer to year end, individuals will evaluate opportunities to reduce income tax exposure. While many are familiar with the tax benefits of IRAs and 401(k)s, one tax-favored account that is often misunderstood is the health savings account “HSA. ”HSAs, if used effectively, can be a powerful tax planning tool.
Consumer-Driven Health Care
Before You Sign Up for Health Insurance at Work, Read This
The fall open enrollment season for employees is upon us, which means millions of American workers will need to make a number of complex decisions when it comes to their benefit selections. To help navigate the maze of decisions, here are four tips to help maximize your workplace benefits. Tip #1: Don’t be scared off by high-deductible health plans. Tip #2: Tap into the power of HSAs.
HDHP vs. PPO: Which Is the Right Choice for You?
To find the right health coverage, you need to weigh the pros and cons of an HDHP vs. a PPO. The best choice for you depends on several factors, including your health, lifestyle, number of dependents, and financial situation. Those with HDHPs can contribute to an HSA — a benefit denied to PPO policyholders. HSAs have several financial benefits.