HSA News for July 5, 2022
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Democrats Forge Ahead on Drug Pricing, Eyeing Wider Deal with Manchin
Democratic leaders have finalized a revised proposal to lower prescription drug prices for seniors, part of a broader scramble to satisfy Sen. Joe Manchin (D-WV) and resurrect a long-stalled economic package that they hope to advance as soon as this summer. The development positions Democrats to jumpstart a key part of the legislative process around their agenda, even as they wrangle over other priorities.
The Federal Government Subsidizes Abortions. Will That Last?
If you’re privileged enough to have a good benefits package through your job, you can use an employer-sponsored FSA to set aside money that can pay for an abortion and related travel expenses, and you don’t have to pay federal income taxes on the money you put into the account. That didn’t change with the Supreme Court ruling, which means federal employees can use federally subsidized funds to pay for abortions. So what would have to change for these subsidies to go away?
HSA Compliance Corner
Abortion and Taxes: What Happens Now Without Roe v. Wade?
Now that Roe v. Wade has been overturned, new questions are popping up about those abortion-related tax consequences. The definition of a qualified medical expense for HSA, FSA, and HRA purposes is the same as for the medical expense deduction. As a result, tax-free payments from HSAs, FSAs, and HRAs are only allowed for legal abortions. And that's now going to depend on state law.
Mistaken Distribution from Your HSA? Here's How to Correct the Problem.
Learn whether your Health Savings Account debit card has restricted coding. If it doesn't, you alone are responsible for segregating qualified and non-qualified items at the point of purchase. If the card has restricted coding, it should process only qualified items and leave a balance for you to pay with a form of personal funds. If you make a mistake,Remember, there are options to correct the mistake. Understand them and use them as necessary to keep your account in compliance.
HSA Industry News
UMB Bank to Buy HSA Business from Old National Bank
UMB Financial has agreed to buy the Health Savings Account business of Old National Bancorp in Evansville, Indiana. The assets, which consist of 157,000 accounts across more than 3,000 employer groups, will significantly expand UMB’s direct-to-employer accounts. The deal is expected to close in the fourth quarter. A sale price was not disclosed.
Devenir Releases New HSA Asset Allocation Calculator
Devenir has released a new version of its HSA Asset Allocation Calculator. The new version of the tool features a modern user interface, greatly improved mobile responsiveness, and additional HSA Asset Allocation models. Additional updates to their HSA tools and education are planned in 2022.
Forma Announces New Partnership with DriveWealth to Launch Industry-First Health Savings Account
Life benefits platform, Forma, announced the company is partnering with DriveWealth to launch Forma HSA with no minimum balance requirement for investment and no hidden fees. DriveWealth will be Forma’s broker dealer for the cloud-based API for the solution. Forma HSA will include a modern banking and investment infrastructure that helps employees maximize the advantage of having an HSA.
First Dollar Launches Partner App to Streamline HSA Administration
First Dollar announced the launch of their Partner application that enables their partners to manage the benefits they have built on its platform, giving them access to choose which products they want to implement. With the ability to view CIP status and documents needed for remediation, First Dollar's partners can quickly solve CIP issues and get customers up and running.
HSA Industry Best Practices
Is Your Health Plan Damaging Your Workers' Financial Health & Undermining Your Wellness Efforts?
Making employer contributions to HSAs or HRAs can help offset upfront financial costs for employees covered by a HDHP, and incentivize employees to proactively pursue necessary medical care. Additionally, varying premium contribution by annual pay level, and providing larger subsidies for those earning less can also help mitigate the financial health consequences of employer health plans.
The HSA Market
Payments Data Caught in Abortion Crosshairs
With the overturning of Roe v. Wade and the illegality of abortion in several states, payments data is now in the crosshairs should prosecutors decide to subpoena those records for evidence. Criminal investigators looking for evidence to prosecute abortion lawbreakers can start with payment data, which can be an easier get than medical records.
Concerns Rising About Drug Management in HDHPs
Companies that offer HDHPs are seeing significant dissatisfaction from employees when it comes to drug utilization management, a new report by Pharmaceutical Strategies Group has found. The report also noted that employer sponsors of HDHPs are paying attention to this dissatisfaction when it comes to designing benefits.
Maximizing Your HSA
What If You Don’t Like Your 401(k) and HSA Investment Options?
Financial products have taken a huge step in offering convenience, lower costs and an ever-increasing selection of investment options. But it can feel restricting to have to participate in an HSA or a 401(k) that may lack your favorite investment options. Unlike a 401(k) plan, the ability to move funds from one HSA to another is universal. You are free to open your own HSA and transfer the money you've been saving into that account.
Consumer-Driven Health Care
Sanofi Caps Out-of-Pocket Insulin Cost at $35 for Uninsured U.S. Patients
French drugmaker Sanofi said on June 29 that uninsured diabetes patients in the United States will pay no more than $35 for 30-day supply of insulin, in the wake of heightened public scrutiny over soaring prices of the life-saving drug. Sanofi said the new price, down from the prior out-of-pocket cost of $99, will be effective from July 1.
How Much Health Insurers Pay for Almost Everything Is About to Go Public
Consumers, employers, and just about everyone else will soon get an unprecedented look at what insurers pay for care, perhaps helping answer a question that has long dogged those who buy insurance: Are we getting the best deal we can? As of July 1, health insurers and self-insured employers must post on websites just about every price they’ve negotiated with providers for health care services, item by item.
Hospitals Must Say How Much They Charge for Hundreds of Procedures. Here's Why Many Don't.
Since the beginning of 2021, a federal law has required hospitals to post prices and establish a consumer-friendly price list for 300 common procedures and services. But a new study finds more than half of U.S. hospitals have failed to meet either of the two main requirements of the law. Here's why many hospitals don't comply.