HSA News for June 26, 2023
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
IRS Rescinds COVID Relief for HSA-Qualified Plans
The Internal Revenue Service has rescinded guidance from three years ago that allowed HSA-qualified health plans to cover COVID costs. Notice 2023-37 states that HSA-qualified plans will not be permitted to provide coverage for testing and treatment of COVID-19 without a deductible. That current guidance now applies only to plan years ending on or before December 31, 2024.
Joe Biden Signs Executive Order Boosting Access to Birth Control
President Joe Biden signed an executive order Friday to expand access to free birth control, including over-the-counter contraception and family planning services. Biden's action was seen as an attempt to require insurers to cover additional birth control products amid a broader push to promote reproductive care one year after the U.S. Supreme Court overturned Roe vs. Wade.
HSA Studies & Analysis
HSA Deposit Rate Update – Devenir's June 2023 Update
How has higher and stickier inflation impacted HSA deposit rates across the industry? As of May 31, 2023, the average rates HSA providers are paying at the $1,000 and $10,00 balance thresholds are up 6 and 10 basis points respectively since June 2021. But money market fund yields rate and have risen sharply over the past year.
HSA Compliance Corner
Six-Month Part A Retro Rule: Can Marriage Soften the Impact?
If you're married and you lose your Health Savings Account eligibility, check to see whether your spouse (or another family member) meets the eligibility requirements. You may have lost the opportunity to fund your account, but other family members may be able to fund theirs.
The HSA Market
How Would Permanent ICHRA Rules Affect HSA Participation?
House Republicans are trying to codify rules to incorporate Individual-Coverage Health Reimbursement Arrangements (ICHRAs) into the federal tax code. Making ICHRAs permanent will result in more hard-working Americans' being able to enjoy the immediate and long-term benefits of a Health Savings Account.
HSAs & Retirement
1 in 3 Americans Isn't Sure How to Cover Medical Expenses in Retirement. Here's a Solution.
A recent survey by HSA Bank found that 33% Americans aren't sure how they'll cover medical costs once retirement rolls around. You could always pad your IRA or 401(k) plan so you have added funds available to cover your senior healthcare costs. But there may be an easier way to help ensure that you're able to pay for medical care in the future -- putting money into an HSA.
6 Mistakes to Avoid When You Turn 65
Making mistakes in the year you turn 65 can haunt you financially — and in other ways — for years to come. So, make sure to avoid the following big mistakes during the year you turn 65. For example, once you sign up for Medicare, you are prohibited from making additional HSA contributions. If you violate this rule, you could be subjected to additional taxes and a penalty.
Retiree Health Care Cost Estimate ‘Flat,’ Fidelity Says
The annual retiree health care cost estimate from Fidelity shows a 65-year-old retiring in 2023 can expect to spend an average of $157,500 for health care expenses during retirement. This is the first time in nearly a decade that the anticipated health care costs for retirees have stayed flat year-over-year. But it is still nearly double the $80,000 it estimated for a single retiree in 2002.
Maximizing Your HSA
3 Rules to Follow With Your HSA
Healthcare is a major expense at any age, and it's important to have money set aside to cover it. In this regard, you have options. You could pad your savings account to pay for healthcare costs, or you could open a Health Savings Account. If you're going to go the latter route, it's important to make the most of your HSA. Following these rules is therefore essential.
My Favorite Retirement Account Just Got Even Better
If you're looking to supercharge your retirement savings, there's one account that stands out above the rest: the HSA. HSAs aren't always thought of as a retirement account. But you can invest your savings and allow the investments in your HSA to grow all the way until retirement. The IRS just made using an HSA for retirement saving even more appealing. Here's what's new.
Consumer-Driven Health Care
Which Healthcare Savings Account Is Right for You?
Because healthcare is expensive, you have decided to save money by spending tax-free dollars by using one of two accounts: health savings or flexible spending. But which one is right for you? An expert weighs in on the two options.
Why Prescription Drugs Are Cheaper Without Insurance
Have you ever gone to fill a prescription and been told your insurance isn’t covering it, only to find out the cash price is way less than your copay would have been? It’s crazy, but it happens more often than you’d think. The good news is, there are ways to make sure you’re getting the best price on your drugs, with or without insurance. Keep reading to find out why.