HSA News for October 31, 2022
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
HSA Studies & Analysis
PSCA Finds More Employers Using Automatic Enrollment for HSAs
More employers are using automatic enrollment into HSAs as part of an effort to position the accounts more as savings vehicles than spending vehicles, according to a new survey. Automatic enrollment "dramatically increases" the savings rate. Employers are still struggling, however, with adequately educating their employees regarding all the benefits of HSAs.
HSA Compliance Corner
Questions about Medicare and HSAs Keep Surfacing - Part B Collisions
Medicare and HSAs have always been on a collision course. As the number of working seniors (those who remain employed after their 65th birthday) increases and HSAs become more widespread, the conflicts between the two programs' rules affect more and more Americans. If you want to remain eligible to fund an HSA after your 65th birthday, you must understand before age 62 (when you can begin to collect Social Security) that you control whether you remain HSA-eligible. But only if you make the right decisions (including inaction) at the right times.
HSA Best Practices
7 Tips to Help Employers and Employees Optimize HSAs
HSAs have been around since 2004, and their popularity has steadily increased among employers and employees. Yet, many current and potential owners don't fully understand the benefits of these accounts. Here are seven tips that employers need to either understand themselves or convey to their employees to increase adoption and effective utilization of HSAs.
Help Employees Find the Best-Fit HSA Strategy
Despite the sustained popularity of HSAs, your employees likely don’t fully understand how to maximize this benefit to protect their health and pocketbook. There are more ways to benefit from an HSA than meets the eye. Here are four HSA strategies to share with employees to help them understand the flexibility and savings potential of their HSA and to define their own personal strategy.
HSA Industry News
First Dollar Joins Forces with Morningstar Investment Management to Simplify the Investment Experience for Health Savings Account Holders
First Dollar is teaming with the Workplace Solutions group within Morningstar Investment Management LLC, a subsidiary of Morningstar, Inc., to simplify the way account holders select investment options for their HSAs. This collaboration will enable First Dollar to deliver a more streamlined investment experience for the members and clients who use its Health Wallet platform.
The HSA Market
It’s Open Enrollment Season. Have You Taken a Good Look at an HSA?
Despite their rapid uptake, there’s widespread confusion about how HDHPs work and how best to use the HSAs that are typically offered in conjunction with them. Even employees who are using a “spend as they go” approach to their HSAs should consider using the accounts to take advantage of the tax breaks. If you’ve forgone the HDHP/HSA combo in the past, use open enrollment season to revisit it.
'Calm Before the Storm': Health Insurance Costs Set to Spike After They Stayed Mostly Flat in 2022, Survey Finds
The cost of family health insurance plans increased just 1% this year even as inflation reached a four-decade high, with higher prices for gas, groceries, rent and other living expenses. But officials warn significant price hikes might surface in 2023 as inflation reaches the health sector and hospitals, doctors and drug companies demand more lucrative payments from health insurers and employers.
41% of Small Businesses Have Increased Prices Due to Rising Health Insurance Costs
Thirty-seven percent of small-business owners said they do not offer health insurance, and rising costs put doing so further out of reach, according to a new survey. Thirty percent said rising costs caused them to change which health insurance plans they offer employees to ones with more cost sharing, such as high-deductible health plans.
Why 90% of Americans Lack Access to Health Savings Accounts
Expanding access to HSAs is key to reducing medical inflation and giving Americans more personalized options in health care. Unfortunately, 90% of Americans have no access to this powerful financial tool. An invisible ceiling exists that keeps most people shut out. Here’s why the HSA ceiling exists, why it matters, and how we can remove it.
HSAs & Retirement
Maxed Out Your IRA? You Can Stash Even More Retirement Savings Here in 2022
IRAs are most people's best option for retirement savings if they don't have access to a workplace retirement plan, but you're only allowed to contribute up to $6,000 in 2022 or $7,000 if you're 50 or older. If you hoped to set aside even more money for retirement, you'll need a backup plan. Fortunately, HSAs offer many of the same benefits, plus a bonus tax break. Here's what you need to know.
HSAs and 401ks—Better Together (Part One)
A supermajority of employers has denied their workers access to America’s most valuable benefits tax preference—the HSA. For plan sponsors pursuing a “health and wealth” strategy, failure to offer a 401(k) and an HSA is a mistake. These two, better together, create a unique engagement lever.
Why HSAs and 401ks Are Better Together (Part Two)
The HSA and 401(k) are complementary benefits. Done right, they are better together. Why? A participant who carefully allocates savings between the two benefits can shape how each is used, today and tomorrow, so as to maximize the net after-tax value achieved from savings, leveraging features that are superior in each plan, to meeting short-term, intermediate, and long term needs along the way to and throughout retirement.
Are HSAs Evolving?
HSAs may still be used more as spending accounts than savings accounts, but a new survey finds signs that retirement plans are starting to influence HSA program designs. Most noticeably, half of large employers—and more than a third of respondents overall—indicate that they do—or will—position the HSA as part of a retirement savings strategy to employees.
3 Things Employees Want Now from Their 401(k)
According to a new Mercer report, when asked what changes they would value most in retirement benefits, employees overall chose an increase in the contribution amount matched by their employer. Employees under 45, who are less likely to have discretionary income to contribute to their retirement plan, would value matching payments made to student loan debt and contributions to an HSA.
Maximizing Your HSA
Here's Why You Should Absolutely Fund a Health Savings Account -- and Take Steps to Make Sure You're Eligible for One
If you're torn between a low-deductible health plan and a high-deductible alternative, be sure to factor eligibility for an HSA into your decision. And that's an opportunity you don't want to pass up. Many people are familiar with health FSAs, which let you set aside pre-tax money for healthcare spending. But HSAs work very differently -- and they offer far more benefits.
Your HSA Can Be an Extra Retirement Savings — How to Make Smart Choices During Open Enrollment
Although health insurance is one of the most popular benefits that workers review yearly, it is important to consider how you will pay for healthcare costs that may not be covered by insurance. HSAs can be a great addition to workers’ financial tool kits, yet less than half of all employees (48%) who are offered an HSA by their employer are using it. To make the most of an HSA, consider these important characteristics and strategies.
Consumer-Driven Health Care
What’s the Difference Between a Deductible vs. Out-of-Pocket Maximum?
Deductibles and out-of-pocket maximums play vital roles in how much your health insurance costs and how much your health plan contributes to your care. You’re more likely to deal with a health insurance deductible. The out-of-pocket maximum is only a concern if you have a year when you rack up many health care costs. Here's how to keep the two straight.