HSA News for September 25, 2023
News from Washington
Reps. Cammack, Steube Introduce ACCESS Act to Make HSAs Available to Millions of Americans
Congresswoman Kat Cammack (R-FL-03) and Congressman Greg Steube (R-FL-17) introduced a fiscally conservative plan to make HSAs available to five million lower-income Americans. The bill would allow individuals to elect to receive contributions to an HSA in lieu of reduced cost-sharing under health insurance obtained through a health insurance exchange.
Moolenaar-Sponsored Bill Ends HSA Waiting Period for Native Americans
Native Americans who are regularly treated at Indian Health Service facilities would receive improved access to HSAs under bipartisan legislation proposed by Rep. John Moolenaar (R-MI). If enacted, H.R. 5546 would amend the Internal Revenue Code to permit individuals eligible for Indian Health Service assistance to qualify for HSAs without a waiting period.
Biden Administration to Ban Medical Debt From Americans’ Credit Scores
The Biden administration announced a major initiative to protect Americans from medical debt, outlining plans to develop federal rules barring unpaid medical bills from affecting patients’ credit scores. The regulations, if enacted, would eliminate information that can depress consumers’ scores and make it harder for many to get a job, rent an apartment, or secure a car loan.
HSA Studies & Analysis
HSA Industry Reaches $116 Billion in Assets
Aided by positive stock market gains, HSA assets saw strong growth in the first half of 2023, while increase in the total number distinct HSA accounts has slowed, according to new data from Devenir. At the midyear point of 2023, Devenir reported $116 billion in HSA assets held in almost 36 million accounts, a year-over-year increase of 17% for assets and 6% for accounts.
2023 Midyear Devenir HSA Research Report
HSA account holders contributed $29 billion to their accounts in the first half of 2023 (up 11% from the year prior) and withdrew $21 billion from their accounts during the first half of 2023 (up 16% from the year prior). We predict that the HSA market will exceed 40 million accounts by the end of 2025, holding more than $150 billion in assets.
Top 20 HSA Market Concentration – 2023 Midyear Update
Prior research by Devenir found that the HSA market has become more concentrated over time as the largest providers have continued to gain market share through a combination of organic growth and M&A activity. Using more recent data, Devenir found a modest increase in market concentration among the top 5 providers from a year ago, up to 70% from 69% in 2022.
HSA Compliance Corner
What's Does It Mean to 'Decouple' HSAs?
Among people who seek to expand the HSA opportunity to more Americans, the concept of decoupling is a compelling and straightforward approach. Decoupling is a simple concept -- it removes the requirement that HSA owners must be covered by an HSA-qualified plan to fund their accounts. Who would benefit if decoupling were accomplished? And what are the barriers?
Should Health FSA and Medical Align? Usually, not Always.
Individuals can be covered by more than one medical plan. But if they want to be eligible to fund an HSA, all plans must be HSA-qualified, and a general Health FSA doesn't have a deductible. Thus, anyone who's covered by a general Health FSA is disqualified from opening and funding an HSA.
HSA Industry News
Conduent to Transfer $2.7B in HSA Assets to HealthEquity
Conduent announced that the business processes outsourcing provider will exit the flexible spending account business and will transfer all of its HSA assets, currently managed on its consumer account platform, BenefitWallet, to HealthEquity in the first quarter of next year.
Truemed Launches Platform for Using HSAs and FSAs for Wellness
Truemed, a firm that aims to help individuals use their tax-free HSAs or FSAs for healthy food, exercise and supplements, publicly launched on September 18. The firm partners with health and wellness brands and integrates their payment systems. Merchants such as CrossFit, Magic Mind and Kos have already managed $3 billion of gross merchandise volume through Truemed.
Market Trends
Why Health Insurance Is Poised to Make Inflation Jump
Inflation is broadly retreating in the U.S. economy. But starting in October, health insurance is poised to act as a countervailing force that buoys inflation for about a year, economists say. That’s significant at a time when policymakers are using inflation data to determine how to set interest rates.
How ICHRAs Can Ignite a Revolution in Coverage
Individual Coverage HRAs (ICHRAs) are new and they're not widely available to employees but they provide companies with another option to help their employees pay medical premiums. They may not be the right choice for everyone, but it's important that benefits advisors and employee benefits professionals understand ICHRAs to determine how this approach to coverage may help them manage their benefits budget as they retain and attract talent.
HSAs & Retirement
63% Think Retiring at 65 Is Not Financially Possible: Here’s What Experts Have To Say
In a recent survey, roughly 63% of people said they don’t think they’ll be financially prepared to retire at the age of 65 and will have to wait a few more years before they can afford to leave the workforce. If you’re wondering whether retiring at 65 is still financially viable, you’re not alone. Here’s what experts have to say on the matter, as well as some ways to improve your financial preparedness so that you can retire when the time comes.
Hispanic Americans Face Retirement Savings Gap — Here's What Can Be Done
Many Hispanic Americans face a retirement savings gap. Cultural factors, language barriers and lower income levels are some of the factors contributing to this disparity. Here are 5 ways Hispanic Americans can improve their future in retirement. HSAs are one way to set aside money for immediate medical expenses and build a nest egg for health care costs in retirement.
Maximizing Your HSA
Why Experts Recommend HSA as a Powerful Alternative to Roth IRA
When it comes to allocating money among various account types, the options can feel overwhelming. However, financial advisors suggest that for many people, there is a clear path to follow. Once you have saved enough to receive your company’s full 401(k) match, the next step is to save your additional funds in an HSA if it is available to you.
Consumer-Driven Health Care
Biden Administration Relaunches Free At-Home COVID Testing Program
The Biden administration is relaunching a program that allows Americans to order free COVID-19 tests through the mail, ahead of a potential surge of infections this winter. The website, Covidtests.gov, will relaunch for new orders September 25. Households will be able to order up to four tests, which are intended for use through the end of the year.
Navigating Medical Bills: Take These 12 Steps to Manage Costs and Minimize Debt
Unexpected medical bills can cost as much as $1,000 or more. Learning how to manage medical bills can minimize your chances of getting into debt, so CNBC talked to experts about how to keep health-care expenses under control. Here are some steps they say you should take.
Hospital Health Care Prices Don’t Match Online and by Phone
Hospital health care prices were all over the map in a study using a secret shopper approach to inquire about costs of births and brain scans. The researchers found “wide variation” between hospitals’ cash prices posted online and those available by telephone. The result: policy makers and and patients who want price transparency for medical services, probably aren’t getting it.