HSA News for March 6, 2023
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Sens. Cassidy, Shaheen, Scott, Kelly Reintroduce Bill to Allow HSAs to Be Used for Direct Primary Care
Senators Bill Cassidy (R-LA), Jeanne Shaheen (D-NH), Tim Scott (R-SC), and Mark Kelly (D-AZ) introduced a bipartisan bill to allow HSAs to be used to pay for direct primary care. The bill clarifies the tax code so that a DPC agreement does not make a patient ineligible to contribute to an HSA, and that pre-tax HSA funds may be used to pay DPC fees.
HSA Compliance Corner
Ugh! Not Renewing a New HSA Program and the Last-Month Rule.
Employers considering dropping a Health Savings Account program at a mid-year renewal must understand that doing so will affect employees who have contributed more than their statutory maximum that year (or are in a testing period because of their date of hire or the company's recent mid-year introduction of the HSA program). But they also must understand that they have options to minimize the financial effect on employees' account contributions.
HSA Studies & Analysis
TIAA Institute: Health Savings Accounts and Life-Cycle Saving -- Implications for Retirement Preparedness
Determining the ideal amount to save for retirement and when to withdraw assets depends on many factors. The challenge is further complicated when an individual has multiple accounts in which they can save. To help inform these decisions, this paper examines how HSAs, which provide powerful tax advantages and flexible distribution opportunities, can optimally be used alongside other savings vehicles to enhance retirement readiness.
HSA Best Practices
Spending vs. Saving: The Difference Between FSAs and HSAs — and What’s Critical to HR
When choosing between offering FSAs or HSAs as part of an employee benefits package, employers must understand each one’s unique features to determine which one is best for their workforce. Offering both accounts can be an excellent way for employers to offer comprehensive benefits packages while still managing costs.
The HSA Market
Where Are the Growth Opportunities with Health Savings Accounts?
Thanks to HSAs, Americans have $100 billion saved for future qualified health-related expenses that they didn't have 20 years ago. Yet much work remains to be done. Too many Americans who would benefit from an HSA don't choose the right coverage, and among those who do, too few owners are using their account optimally. What will be the drivers of continued growth? Let's look at four key levers.
Study: Why Employers Expect to Be Offering Health Coverage for the Long Haul
Despite rising costs, employers will continue to offer healthcare coverage to their workers, and they don’t see that ending anytime soon, if ever, according to a report by the Employee Benefit Research Institute. Predictions that many employers would steer workers to plans offered on the Affordable Care Act marketplace didn’t come to pass for multiple reasons identified in the report.
HSAs & Retirement
You'll Need More Than Medicare to Cover Healthcare in Retirement. Here Are 3 Things to Try
Medicare is your first line of defense against large medical bills in retirement, but it's not perfect. It has costs of its own, including monthly premiums, deductibles, and copays. And there are some things, like hearing aids, that it doesn't cover at all. Consider making the three following moves to better prepare yourself for retirement healthcare expenses, such as saving in an HSA.
This Lesser-Known Way to Save for Retirement Could Result in Major Tax Savings
It really pays to max out your HSA contributions if you're eligible for one of these accounts. Then make a point to keep your money invested rather than take withdrawals every time a medical bill arises (assuming you can afford to pay those bills out of pocket). Even if you can't max out your HSA, funding one of these accounts is a good bet.
3 HSA Benefits You Don't Want to Miss Out On in Retirement
An HSA is often used to help pay for medical expenses when they occur, but it can also be an excellent way to save for retirement. If you have a substantial HSA balance when it's time to retire, you're sitting in a great position. Here are three benefits of an HSA in retirement you don't want to miss out on.
Here's Why HSAs Are Massively Underrated Retirement Accounts
HSAs combine popular features of the 401(k) and Roth IRAs, creating a best-of-both-worlds situation that can allow you to circumvent taxation altogether. HSAs also provide an extra benefit for retirees that isn't available to younger account holders--penalty-free withdrawals at age 65. There's a strong chance that retirees will have an opportunity to take full advantage of the HSA's tax benefits, and there is no more efficient vehicle for healthcare savings.
Maximizing Your HSA
The HSA ‘Deathbed Drawdown’: Making Tax-Efficient Distributions Of Large Balances (When There Isn’t Much Time)
One possible outcome of ‘superfunding’ an HSA is that the account owner may not actually use up all of their HSA funds over their lifetime, which can have significant tax consequences. So it’s important to consider the risks of the account owner being unable to use up their funds and to plan for potential ways to quickly draw down the account in the event the HSA owner will not outlive their HSA funds.
Consumer-Driven Healthcare
Eli Lilly to Cut Insulin Prices by 70%, Cap Monthly Costs at $35
Eli Lilly plans to cut prices on its most commonly prescribed insulin products by 70% and will also cap customers' out-of-pocket costs at $35 a month. The change comes as Eli Lilly and other insulin manufacturers face ongoing criticism for their prices, which have pushed more people with diabetes to ration insulin or reduce their use of the medication.
After Capping Insulin Copays, Colorado Sets Its Sights on EpiPens
Almost four years after becoming the first state to cap insulin copayments, Colorado may limit what consumers pay for epinephrine autoinjectors, also known as EpiPens, which treat serious allergic reactions. A proposed state law would cap out-of-pocket copays at $60 for a two-pack of epinephrine autoinjectors. Two brand-name autoinjectors cost just under $636 at a Walgreens.