HSA News for August 5, 2024
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Second Texas Federal Court Broadens Stay of DOL Retirement Security Rule
A second federal court in Texas put a hold on the Department of Labor’s Retirement Security Rule on July 26, expanding beyond an earlier stay to all of the rule’s exemptions and saying that plaintiffs are “virtually certain” to succeed in their claims against the regulator.
Compliance Corner
How to Prorate Your Contribution When You're Not Eligible All Calendar Year
You must prorate your HSA contribution if you do not satisfy all eligibility requirements prior to December 1. The math is straightforward. Note that once you're age 55, you're permitted to make an annual $1,000 catch-up contribution. You must also prorate that amount when determining your maximum contribution for the year.
Market Trends
High Drug Costs, Inflation Impacting Workplace Health Plans
Workplace health plans continue to see rate increases as employers deal with high prescription drug costs and lingering inflation, according to a new report. To offset these higher costs, employers are asking employees to pay more for their coverage. The number of companies offering an HSA-qualified health plan rose to 52% percent in 2024.
Best Practices
Maximizing HSA Participation by Building a Financially Literate Workforce
Maximizing HSA participation requires a collaborative effort between employers, employees and advisors. By fostering a financially literate workforce, organizations can enhance employee wellbeing and help ensure individuals are prepared for future health care expenses and retirement.
HSAs & Retirement
Retiree Health Care Costs Continue Rising, Milliman Finds
The average healthy 65-year-old retiring in 2024 is projected to spend a significant amount on health care over the course of their remaining lifetime, according to the 2024 Milliman Retiree Health Cost Index.
Morningstar: 45% of Americans Will Run Short of Funds if Retiring at 65
According to a study based on a new retirement savings simulation tool from Morningstar Inc’s retirement group, about 45% of Americans will run short of money in retirement if they retire at the traditional age of 65. Overall, the findings point to the need for Americans to save more and for longer in tax-deferred savings programs.
Do I Have Enough Cash to Cover My Own Health Care Needs in Retirement? Here’s the Math in 2024 to Figure It Out
Many baby boomers are concerned about outliving their retirement funds, particularly when it comes to health care. Medicare kicks in at age 65, but even then, you can’t rely on it to cover all of your health care costs. However, there are strategies that can help you map out your health savings plan.
Family Contribution Strategies When One Spouse Enrolls in Medicare
What happens when one spouse enrolls in Medicare and the couple remains covered by an HSA-qualified plan? It's a common question - and among the most confusing HSA issues. The answer is often elusive because very few people understand the requirements of both programs. Here's what you need to know.
Consumer-Driven Health Care
Surveys Show Gen Z Adults Lack Basic Insurance Knowledge
A recent survey revealed some surprising news regarding younger adults. Most of them don't have a good grasp on the importance of having adequate insurance. Many also don't understand basic insurance terms, such as "deductibles" and "co-pays."
Nearly Half of Insured Americans Get Surprise Expenses in Medical Bills, Survey Finds.
Nearly half of Americans with health insurance said they received a recent medical bill or a charge that "should have been free or covered by their insurance," according to a new survey. However, fewer than half of those patients challenged their health insurance company or a medical provider about the unexpected charges.