HSA News for February 13, 2023
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
HSA Compliance Corner
Thank You for Your Military Service. Now, about Your HSA Eligibility . . .
Veterans are entitled to certain lifelong medical benefits from the federal government. But those benefits may affect their eligibility to open and fund a Health Savings Account. It's time to correct this injustice by removing barriers to their opening and funding an HSA when they meet all the eligibility requirements but take advantage of the veteran's benefits that they've earned.
Dos and Don’ts of Employer Contributions to HSAs
Failure to understand the HSA rules, especially their interaction with Medicare and other plans, can have tax and legal implications for employees and employers alike. Employers who choose to fund their employees’ HSAs should develop guidelines governing how much the employer will contribute, when the employer will contribute, and the criteria for receiving an employer contribution.
HSA Industry News
Devenir Releases It's HSA Guided Portfolio 2.0
Devenir announced that an updated version of HSA Guided Portfolio is now available. The tool helps investors craft an asset allocation that may be appropriate for their life circumstances, risk tolerance, and HSA investment goals. Investors are then able to manage their account by setting future investment elections or realigning their current allocations directly from the tool.
HSA Best Practices
Tax Season and HSAs: How Employers Can Help Provide Support
With this year’s deadline to file personal income taxes coming up on April 18, employers can play a role in guiding employees through the process of reporting Health Savings Account activities on their tax returns. Here are some considerations that employers should make sure their benefits departments are communicating to employees.
The HSA Market
New Study Confirms What We Thought We Knew about HSAs
A recent study by the Employee Benefits Research Institute provides good insight into the behavior of HSA owners. These insights are important to both employers who offer HSA programs and administrators who manage these accounts. The report has identified some opportunities for further education or other action to help employees use their accounts optimally.
High Deductible Health Plan Enrollment Hit Record High in 2021
High deductible health plan enrollment hit a record high in 2021, with nearly six out of ten employer-sponsored health plan members enrolled in a high deductible plan, according to new survey. This is the eighth year in a row that enrollment has increased and it is also the highest enrollment rate since 2012. The state with the highest HDHP enrollment rate was Maine, and Arkansas saw the biggest increase between 2017 and 2021.
HSAs & Retirement
Worried About Sky-High Healthcare Costs in Retirement? Here Are 3 Ways to Manage Them
Many seniors underestimate how much healthcare will cost them. If the idea of having to cover senior healthcare costs is daunting to you, you're in good company. Here are some steps you can take to make your healthcare expenses more manageable. If you're eligible to participate in an HSA it pays to pump as much money as you can into that plan during your working years.
Expect to Live a Long Time? Plan for Rising Healthcare Costs.
It’s expensive to be sick in this country, but it can cost even more to be healthy over the long term. That’s because medical prices rise at a higher rate than inflation, and retirees generally consume more—and increasingly costly—care as they age. Careful planning can help you manage future medical needs, including the wild card of long-term care.
Maximizing Your HSA
Why Older Married Couples Should Open Two HSAs (When They Can)
Older individuals who are HSA-eligible are permitted to make “catch-up” contributions of $1,000 annually starting with the year they turn 55. However, many couples forget that both spouses can make these catch-up contributions if they are eligible. Here are several reasons why opening two HSAs can be a smart move and other useful tips for older couples.
The Account People Forget to Roll Over
Many employees are changing jobs or looking for greener employment pastures. While rolling over an HSA may be the last thing on a client’s mind, leaving an HSA with a former employer’s provider can cost your clients money and cause them to miss out on valuable investment opportunities. Rolling over an HSA can help them get a leg up on saving for long term health care costs.
This Savings Account Offers a ‘Triple Tax Benefit’—but 88% of Users Are Missing Out
If you don’t think of HSAs as long-term investing accounts, you’re not alone. Only 12% of people who hold an HSA use it to invest in assets other than cash, according to the latest research from the Employee Benefit Research Institute. The other 88% are missing out. Here’s how HSAs work, and why the pros recommend using them to invest for long-term goals.
Consumer-Driven Healthcare
Healthcare Costs Are Up 4.1% From Last Year -- but This Account Can Help You Pay for It
The cost of healthcare has risen a lot through the years, leaving many people struggling to keep up, and it has the potential to keep climbing -- even if inflation levels cool this year. That's why it's so important to make sure you have money set aside for medical expenses. Thankfully, an HSA will allow you to save for healthcare in a tax-advantaged manner -- if you qualify for it.
Want a Clue on Health Care Costs in Advance? New Tools Take a Crack at It
Need medical treatment this year and want to nail down your out-of-pocket costs before you walk into the doctor’s office? There’s a new tool for that, at least for insured patients. Health insurers and employers must provide online calculators for patients to get detailed estimates of what they will owe for a range of services and drugs. It’s the latest effort in an ongoing movement to make prices and upfront cost comparisons possible in a business known for its opaqueness.
Hospitals Defy Price Transparency Rules
Most hospitals aren't complying with federal price transparency rules that went into effect January 2021, according to a recent report which shows that only 24.5 percent of hospitals are compliant among the 2,000 hospitals reviewed. Most of the hospitals had files posted, but three-quarters of the non-compliant hospitals had issues such as incomplete files or unclear prices.