HSA News for February 28, 2022
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Biden Extends COVID-19 National Emergency
President Joe Biden has decided to extend the designation of COVID-19 as a national emergency. The national emergency was first declared March 13, 2020, and was set to expire on March 1, 2022, had President Biden not chosen to extend it. In a Feb. 18 letter to Congress, he wrote that the national emergency declaration will now continue past March 1.
Insulin Copay Bill Advances in What Could Be Senate Democrats Last Gasp for Price Reform
Though popular, the proposal to cap insulin copays is a relatively minor part of the drug pricing reform package included in the stalled Build Back Better Act. But it may represent Democrats’ best chance of passing any drug pricing-related legislation while they still hold majorities in Congress.
HSA Industry Best Practices
Help Clients Take Advantage of the Triple Tax Benefits of HSAs
HSAs are increasingly prevalent as an employee benefit. Financial advisors can help clients navigate the triple tax advantages of HSAs by helping them plan for the future while lowering their taxable income today. Here are some of the ways that advisors can help clients take advantage of the benefits of HSAs.
The HSA Market
Do Low Balances Indicate That HSAs Benefit Only Wealthy Owners? Nope!
Half of HSAs have balances less than $500. Does that mean HSAs offer no benefit to non-wealthy account owners? Not at all. Patients who don't own HSAs pay with personal (after-tax) funds and enjoy no tax benefit. If they do have an HSA, they can typically save between 20% and 37% on all qualified expenses by paying for them through their HSA. That savings can really add up the more they spend.
HSAs & Retirement
Seniors Are Struggling With Medicare Costs, but This 1 Move Can Help
One big misconception about Medicare is that it provides free health coverage for enrollees. The reality is that there are many costs seniors routinely face under Medicare, and those costs can climb from year to year. You can easily pad your IRA or 401(k) plan so you have more money to pay for medical costs as a senior. But another option worth exploring is funding a Health Savings Account.
Maximizing Your HSA
How to Use an HSA to Pay Medical Bills — Even the Old Ones
If you have a Health Savings Account but not enough money to cover your medical expenses, you are not necessarily doomed to insurmountable debt — even if you owe on old medical bills. Want to know how you can start paying down old medical debt with your HSA? Read on.
Have an HSA? Here's Why You Shouldn't Tap It Just Yet.
Saving in a Health Savings Account is a great way to help ensure that you'll have money on hand when healthcare expenses arise. But actually, if you want to make the most of your HSA, then your best bet is to not touch that money year after year. Here's why.
Does It Make Sense To Pay Medical Expenses With Cash Instead of Using HSA Funds?
Money expert Clark Howard says an HSA is a great way to use pre-tax dollars to pay for expensive health insurance deductibles, but it’s also a great retirement account. Because of this, he wants you to have some strategy behind the way you use your HSA. Does it make sense to pay medical expenses with your HSA? Clark says, yes, but it’s a conditional yes.
Consumer-Driven Health Care
HSA vs. FSA: Choosing the Right Account for Your Health Care
Do you have an FSA? An HSA? Is it possible you mix up the two? If so, you’re not alone. Lots of people confuse these accounts. Both an FSA and an HSA are used to help you set aside funds for medical expenses and save money on taxes. They share a few similarities, but it’s important to understand their key differences if you want to pick the right account for you.