HSA news for December 23, 2024
HSA news is compiled weekly by Mr. HSA, Roy Ramthuun.
News from Washington
Shutdown Update: American Relief Act Sustains Critical Telehealth Flexibilities (but not for HSAs)
Congress passed the American Relief Act of 2025 early Saturday morning, avoiding a shutdown of federal agencies and a swift end to some key telehealth policies. But other telehealth policy flexibilities were not extended, including first-dollar coverage of telehealth for HSA-qualified plans. Lawmakers could restore these flexibilities retroactively on a short or long term basis at a later date.
IRS Announces Tax Relief for Victims of Post-Tropical Storm Helene in West Virginia; Deadlines Postponed to May 1, 2025
The IRS announced tax relief for individuals and businesses in parts of West Virginia that were affected by Post-Tropical Cyclone Helene that began on September 25, 2024. These taxpayers 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 You Reimburse New Family Members' Expenses With Old HSA Contributions?
You can reimburse your spouse’s and tax dependents’ qualified expenses tax-free from your HSA if the family member who incurs the expense is your spouse or your tax dependent at the time of the qualified expense. Remember that they do not have to be covered on your medical plan for you to reimburse their qualified expenses tax-free.
Industry News
Flex Launches Flex Market: A New Way for Consumers to Maximize HSA/FSA Spending
Flex announced the launch of Flex Market, a marketplace where consumers can discover and purchase HSA and FSA-eligible products and services. Flex Market offers a wide range of eligible items—from women's health products to prescription eyewear to wearables—alongside services like fitness programs, personal training, and massages.
Best Practices
Debunking 4 Common Employer Myths to Achieve Better HSA Employee Benefits
Employers may believe that employees are taking full advantage of their HSAs, but the numbers do not bear this out. Only 37% contributed the maximum amount allowed, and 63% were not taking full advantage of the tax benefits and savings potential offered by these accounts. Here are four HSA misconceptions to examine.
How Employers Can Set Every Generation Up for Financial Wellness
While companies can't guarantee that their benefits will address the specific needs of every individual employee, they can implement offerings that are impactful for every generation. All workers — despite their generation — name healthcare (72%) and retirement (73%) as the two benefits most important to their financial wellness. The benefits that employees rank next vary across generations.
Market Trends
Security Is the Watchword for the Prepaid Card Market
Faced with pressure from consumers and regulators, prepaid payment vehicles have increasingly focused on promoting their security features. By staying ahead of the curve, prepaid programs and their affiliates can use a variety of options in technology, packaging, messaging, and consumer engagement to reassure users of a safe and reliable product.
Half of Gen X Has Done No Retirement Planning, Study Says
New research shows Gen Xers are particularly far behind on planning and saving for their golden years. Only 14% of Americans aged 44 to 59 believe they've saved enough for retirement, according to a new study. And almost half — 48% — haven't done any retirement planning at all.
HSAs & Retirement
Why Health Savings Accounts Are Great for Retirement Savings
HSAs can be a savvy way to save money by reducing your overall medical spending. It can also provide retirement savings benefits. Money can be deferred into an HSA account on a pre-tax basis, and when money is withdrawn to cover qualified medical and dental expenses, withdrawals are tax-free. Here’s how an HSA saves you money.
Trump’s Tax Plans: 6 Ways They Could Shake Up Your Retirement
Donald Trump's first presidency’s tax and savings policies continue to influence retirement planning and may provide insight into what’s coming next. How these policies evolve under his renewed leadership could bring both opportunities and challenges for retirees. Here's six ways these policies might affect your retirement and how you can prepare.
8 Disappointing Realities of Medicare
For millions of people, Medicare is one of the pillars of retirement. The program provides health insurance for most Americans from the age of 65 through the rest of their lives. However, Medicare is not perfect. Some beneficiaries are surprised to learn of the program’s shortcomings. Following are some of the disappointing realities of Medicare.
Maximizing Your HSA
Health Savings Accounts Are Becoming More Popular—Here’s Why Experts Recommend Them
Last year, about 60% of workers chose the HSA-qualifying health insurance option, according to one survey. Nearly two-thirds of the employers say they’ve seen an increase in workers enrolling in HSA-qualified plans over time. Despite HSAs' growing popularity, few employers focus on educating their employees about these strategies.
The Perfect Gift for That Young Adult Child? How About an HSA and a Contribution?
A contribution to a young adult child's HSA can be a life-changing gift. Not convinced? Let's review why it may make sense if your adult child is under age 26, covered on your HSA-qualified plan, is no longer your tax dependent, and meets other requirements to open and fund an HSA.
Give Your Kid a 7-Figure HSA
If you have a 19-year-old child, they can make an HSA contribution that is completely separate from your HSA contribution. If you put $8,300 in their HSA from age 19 to age 25, and it is all invested and not spent, by the time the child is 65 it will add up to several hundred thousand dollars (or more) depending on rates of return. What better gift to give?
Consumer-Driven Health Care
The Cost of Healthcare Will Drive More Consumers to Become Price-Conscious
Consumers are bearing more responsibility for their healthcare costs as health plan deductibles rise. As consumers shift from making health purchases through their insurance plan to paying more out of pocket, companies have an opportunity to differentiate themselves by providing the same level of customer service that folks experience in their everyday lives.
I Scheduled 3 Preventative Surgeries in One Year With No Debt — and Now I Teach Other People How to Afford It
In 2018, I found out I had a BRCA1 mutation that would increase my risk of breast and ovarian cancer. I knew I wanted to get preventive surgeries to lower my risk. My biggest fear was how would I pay for everything? In 2019, I had three surgeries in one year and used funds from my HSA with a 0% APR payment plan.
Wearable Health Devices: How They’re Shaping Preventive Care
Wearable health devices have become an integral part of modern healthcare. These tools are empowering individuals to monitor their health in real-time. The rise of preventive care is being driven by advancements in these devices. Wearables play a key role in streamlining healthcare workflows and promoting healthier lifestyles.