HSA News for March 28, 2022
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
With Democrats' Health Agenda Stalled, Lawmakers Turn to Insulin
Democrats who have hit a wall on achieving sweeping drug price reforms are pushing a narrower policy fix they hope will bolster the midterm fortunes of key members. Sen. Chuck Schumer (D-NY) announced a plan on March 22 to bring legislation to the Senate floor just after Easter that would cap the out-of-pocket cost for insulin products at $35 per month and take other steps to extend relief to diabetics. But while Democrats are anxious to campaign on a tangible win, the plan has drawn criticism from the right and the left, underscoring the challenges that lie ahead.
HSA Compliance Corner
Be Careful Not to Let Travel Insurance Disqualify You from Funding Your HSA
Emergency medical travel insurance can fill an important gap when you're on vacation in another country. But how do these policies affect a traveler's eligibility to fund a Health Savings Account? Like most questions around these accounts, the answer is, "It depends." But be sure to understand the effect of this coverage on your eligibility to fund an HSA.
HSA Industry News
HSA Assets Hit $100 Billion
Health Savings Accounts grew to $98 billion in assets held in more than 32 million accounts as of December 31, 2021, according to Devenir. In January, HSA assets reached $100 billion and accounts totaled 33 million. More than two million HSAs have at least a portion of their money invested, representing over 7% of all accounts.
HSAs & Retirement
Healthcare Could Be Your Greatest Retirement Expense. Here's a Great Way to Save for It
Once you retire, you may find that some of your living costs manage to shrink. But if there's one expense that you're likely to spend more on during retirement, it's healthcare. If you're worried about affording healthcare once you stop working, then it pays to set aside money specifically for that expense during your working years. A Health Savings Account is the ideal place to park and invest that cash.
Today's High Inflation Will Increase Retirement Health Care Costs...Forever
Inflation is increasing what workers can expect to pay for health care costs in retirement, according to a new report. HealthView Services estimates that for an average 65-year-old couple, lifetime retirement health care costs will grow by an additional $85,917, for a total of $673,587.
What Retirement Means for Your Taxes
Although your tax burden probably will lighten when you retire, you’ll still pay taxes on income you receive from sources that haven’t been taxed yet, such as 401(k) and individual retirement accounts. Here are the key ways that income is taxed in retirement, and some strategies that can help you be as tax-efficient as possible. For workers enrolled in high-deductible health plans, a Health Savings Account can help.
Maximizing Your HSA
HSA Savers May Be Missing Out On This Huge Opportunity
The money you have in your HSA doesn't have to just sit in cash. You can invest that money and grow it into a larger sum, the way you can (and should) invest the money you have sitting in your 401(k) plan or IRA. But a recent report found that only 21% of HSA enrollees are actually investing their money. Those who aren't investing are losing out on a big wealth-building opportunity.
Consumer-Driven Health Care
You Have a Chronic Condition. Is an HSA-qualified Plan the Best Coverage?
At first glance, HSA-qualified plans appear to be the worst possible form of coverage for someone with a chronic condition that requires regular and expensive treatment. After all, most care for chronic conditions must be applied to the deductible. Although this requirement alters the financial calculation for these patients, it's worth digging a little deeper, as an HSA-qualified plan and the associated Health Savings Account may be more advantageous financially. Here's how that can be.