HSA News for February 27, 2023
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
IRS: May 15 Tax Deadline Extended to October 16 for Disaster Area Taxpayers in California, Alabama and Georgia
Taxpayers residing disaster areas in most of California and parts of Alabama and Georgia now have until October 16, 2023 (extended from the previous deadline of May 15 for these areas) to file tax returns and make tax payments. This means that eligible taxpayers will also have until October 16 to make contributions to their IRAs and HSA for 2022.
HSA Compliance Corner
What Is Medicare’s “Creditable” Prescription Drug Coverage?
I turned 65 in August 2021, continued to work full-time with an HSA that has a $3,000 deductible and used a prescription discount card to cover medications. I just received a notice from Medicare saying they do not have record of me having prescription drug coverage that “met Medicare’s minimum standards” from 8/1/2021 to 12/31/2022, and I may receive a Part D late enrollment penalty. What does this mean?
HSA Studies & Analysis
Health Savings Account Balances on the Rise
According to a new study from the Employee Benefit Research Institute, the majority of HSA owners are using their HSAs to pay for current expenses and thus miss out on many of the tax benefits. Still, the average balance in HSAs increased since 2020 and the share of account owners who invest their HSAs has crept steadily upward since EBRI began it analysis of HSAs.
Mixed Motivations Behind HSAs
Enrollment in HSA-qualified plans reached a record high in 2020 with 19% enrolled in such a plan, slipped to 18% in 2021, but climbed back up to 19% in 2022. Enrollment in non-HSA-qualified plans fell from 15% to 12% during the same period, according to the 18th Annual Consumer Engagement in Health Care Survey, published by EBRI and Greenwald Associates.
HSA Industry News
HSA Bank Grows Employee Wellness Offerings
HSA Bank is expanding its lifestyle spending accounts offering to provide funds for wellness expenses not traditionally covered by health insurance or HSAs. The employer-funded accounts are designed to help employers attract and retain employees, and may include gym memberships, home fitness equipment, mental health counseling and life planning.
The HSA Market
Workers Don't Carefully Examine Health Plan Choices, EBRI Says
Despite having a variety of policy choices, many employees spend little time examining their healthcare insurance choices during annual open enrollment, according to a survey by EBRI. The exception are those employees who are enrolled in a high-deductible health plan, who did spend more time than traditional health insurance plan employees when analyzing their choices.
HSAs & Retirement
Health Savings Accounts: The “Secret Sauce” for Retirement Planning
Health Savings Accounts are a valuable tool for saving money on health care costs, but they can also be an effective way to save for retirement. HSAs offer several tax advantages that make them a unique complement to traditional retirement planning. Here are some key benefits of using an HSA for retirement savings.
Maximizing Your HSA
Six Consumer Tips to Preserve Your Health Savings Account Balances
Americans are great shoppers but don't typically shop for medical care. They tend to accept their doctors' recommendations on next steps and go where their primary-care physician leads them. But Americans with an HSA who pay $500 less for an MRI at age 35 can let it grow 6% annually to nearly $2,900 at age 65. Here are six ways that you can become a more prudent consumer.
I Have Thousands in My HSA. Here's Why I Still Pay for Healthcare Expenses Out of Pocket
We have several thousand dollars sitting in our HSA, but when I got a medical bill the other day, I paid it using my credit card rather than taking a withdrawal from my HSA. And I plan to pay for my remaining healthcare expenses out of pocket this year as long as I'm able to do so rather than take HSA withdrawals. And there's a very good reason I'm trying my best to leave the money in my HSA alone.
My Health Is Great. Should I Still Open an HSA?
If your health is great, and so is that of your family, then you might think you shouldn't bother with a Health Savings Account. After all, why set money aside for healthcare expenses when you don't anticipate having many in the near term? But because of the flexibility that HSAs offer, it pays to open and fund one even if you don't expect to spend money on healthcare anytime soon.
Consumer-Driven Healthcare
Americans Worried About Rising Drug Costs, Health Bills: Survey
Half of Americans in a new poll say the government should emphasize lowering prescription drug costs and reducing the cost of health care over other public health-related priorities. Preventing overdose deaths and accidents, as well as ensuring medication and health practices safety, were listed as other top priorities.
Health Care Price Transparency Rules Are Now in Effect, so Why Isn't It the Norm?
Over two years have passed since the federal hospital price transparency rule was enacted. Still, America struggles with high, painfully-opaque pricing across health care that hurts employers, workers, patients, and taxpayers. With policy in place and overwhelming public support, why isn’t price transparency the norm? I foresee five trends emerging in the industry.
60% of Americans Uncomfortable with AI in Medical Care
A majority of Americans are still uneasy about artificial intelligence being used in their own medical care, according to a new report. 60 percent of Americans said they'd feel uncomfortable if their healthcare provider relied on AI to diagnose diseases or recommend treatments. 40 percent said they thought AI would reduce the number of medical mistakes, though 57 percent said it would hurt the patient-provider relationship.