HSA News for October 14, 2024
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
IRS Provides Hurricane Milton Relief; May 1 Deadline Now Applies to Individuals and Businesses in All of Florida
The IRS announced that taxpayers impacted by recent hurricanes in all of Florida now have until May 1, 2025 to file various federal individual and business tax returns, make tax payments, and make 2024 contributions to IRAs and HSAs.
Compliance Corner
Can I Reimburse My Spouse's Qualified Medicare Expenses? Yes, But . . .
Under HSA rules, an account owner can reimburse tax-free her own, her spouse's, and her tax dependents' qualified expenses, whether they themselves are HSA-eligible. However, Medicare premiums are a qualified expense only if the account owner herself has turned age 65. Many people who have HSAs are not aware of this rule.
Navigating HSA and FSA Compliance: Key FAQs and Common Misconceptions
As we enter another season of open enrollment, one crucial topic is top of mind for many employees: HSA and FSA compliance. HSAs and FSAs are often misunderstood, despite their significant financial advantages. It’s time to clarify the ins and outs of these tax-saving healthcare accounts and answer some HSA and FSA FAQs.
Industry News
HSA Store Celebrates HSA Day with Launch of New Learning Center Resources for Open Enrollment
HSA Store will celebrate HSA Day on October 15 with the launch of new HSA Learning Center resources. The Learning Center launch supports open enrollment education. HSA Store believes lack of understanding about how HSA funding works can prevent individuals and families from enrolling in and making the most of these accounts.
PSCA Releases National HSA Day Materials for Employers
PSCA is celebrating National HSA Day on October 15 with a free education campaign for employers, similar to the annual education campaigns provided for 401(k) Day. One of the most consistent findings in PSCA’s annual HSA survey is the challenge of educating employees about HSAs and their benefits, particularly in terms of retirement.
Market Trends
Employer Health Care Premiums Hit $25K in 2024: KFF
2024 marks the second year in a row that employer-sponsored health insurance premiums are up 7% to reach an average of $25,572 annually, according to the Kaiser Family Foundation's annual survey. Premiums jumped 7% in 2024, the biggest increase the survey reported since 2011.
Mark Cuban Takes His PBM Fight to Employers
Mark Cuban is urging corporations to dump the middlemen that handle their drug benefits and shop for better deals with providers and smaller companies that will pass through their savings. Cuban believes a streamlined, more transparent system will generate more savings than direct government price negotiations.
Most Millennials, GenZers Get Health Information From Social Media, Survey Reveals
A new online survey from Healthline Media and YouGov found that many Millennials and Gen Zers rely on social media for health information. The survey reveals a widespread reliance on social media as a primary source of health information, from missing annual physical exams to mammograms, gynecological visits, and colonoscopies.
Best Practices
4 Ways to Foster a Thriving Workforce Amid Rising Health Costs
Thriving organizations rely on thriving employees. But rising healthcare costs create challenges in achieving this level of success. Many employers remain dedicated to improving their employees’ overall wellbeing despite this high-cost environment. Here are four key areas to focus on to keep workforce needs at the top of business leaders’ priority lists.
Creating Benefits-Literate Employees: The Case for Off-Cycle Education
Benefits literacy plays a vital role in job satisfaction—and, ultimately, retention. When knowledge gaps exist or employees aren’t aware of benefit features, they may miss out on critical resources, feel undervalued and become more likely to disengage or seek opportunities elsewhere. Building a benefits-literate culture requires a strategic approach to year-round education.
Employer Financial Wellness Programs Bring a Sense of Security, a Boost to Morale, a Benefit for All
Employees are increasingly harder to retain. Employees want more benefits, and their finances are a great place to start. Strategically implementing an employer financial wellness program — including educational resources, exclusive banking benefits and products, one-on-one guidance, online resources and/or HSAs — is a proactive move that reaps long-term benefits for employers and their employees.
HSAs & Retirement
Learn How One HSA Participant Grew His Funds by 7 to 8 Percent Year-Over-Year
WEX's own Zach Hanson has been an HSA participant for over 10 years and has grown his HSA funds by 7 to 8 percent year-over-year. Doing so requires developing an HSA investment strategy. Here's how he did it.
Maximizing Your HSA
Unlock the Power of HSAs: 5 Smart Strategies for Health and Wealth
Health Savings Accounts are highly beneficial for employees. They are portable, staying with employees even if they change jobs or retire, and offer investment options to grow savings. By taking advantage of HSAs, employees can enhance their financial wellbeing. Here are 5 tips you can share with employees about HSAs.
This Was the Biggest Small Business Tax Mistake I Made in 2024
As a small business owner, I buy health insurance for my family on HealthCare.gov. I had an HSA in 2022, but last year I accidentally chose a non-HSA-eligible plan. That meant paying thousands in extra taxes in 2024. Let's take a closer look at what an HSA is, why it's such a great tax break, and why small business owners should try to avoid my mistake.
Why a Limited-Purpose Health FSA? Let Me Count the Reasons
Why would you make an election to a Limited-Purpose Health FSA (LPFSA)? Only about 4% of Health Savings Accounts are funded to the limit, so many owners are better served by increasing their contributions rather than enrolling in an LPFSA. But here are five distinct reasons to consider electing an LPFSA if your employer offers one.
Consumer-Driven Health Care
Why Doesn't My HSA Cover Bug Spray but It Covers Sunscreen?
After seeing the recent spike in mosquito illnesses, I wanted to buy bug spray. My HSA says I can't use the money to buy that. But I can use it to buy sunscreen. Both these products protect my health. Why can I buy one and not the other? It comes down to what the IRS considers a "medical expense" and how it's marketed.
Are Vitamins Covered by Your HSA?
Many people with HSAs wonder if vitamin and supplement purchases are qualified expenses for these accounts. In general, vitamins are not considered an HSA eligible expense unless they are prescribed by a doctor for a specific medical condition. For example, prenatal vitamins during pregnancy or vitamin D supplements to treat a deficiency could be eligible expenses under your HSA.
Can You Use Your HSA for a Gym Membership?
Gym memberships are generally not considered qualified medical expenses under IRS guidelines. Gym memberships are typically viewed as personal or recreational expenses rather than a medical necessity. So using HSA funds for them could result in taxes and penalties. There are some exceptions, such as when a doctor prescribes a gym membership as part of a treatment plan for a specific medical condition.