HSA News for September 23, 2024
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
ABA HSA Council Supports House-Approved Flexible Medical Coverage Bill
A House bill (H.R. 3800) that would codify an IRS notice to expand the list of preventive care benefits permitted to be provided by high deductible health plans passed by voice vote on September 17. Kevin McKechnie, executive director of the American Bankers Association’s Health Savings Account Council, voiced the association’s support for the bill in a letter to House leaders.
GOP Push to Get More Americans into High-Deductible Health Plans Is Dividing Democrats
Lawmakers on both sides of the aisle want Americans to embrace more risk when it comes to their health care. They’re proposing to do it by making high-deductible health insurance plans a little less risky. A push led by House Republicans to allow insurers offering the plans to cover more expenses than they do now is gaining momentum in Congress and dividing Democrats.
Compliance Corner
Is Cosmetically Motivated Vision-Correction Surgery a Qualified Expense?
You can reimburse tax-free from your HSA any vision expense that diagnoses, cures, mitigates, or treats an injury, illness, or condition. If you have a medical condition–imperfect eyesight--vision-correction surgery is an appropriate treatment for that condition and is therefore a qualified expense, even if you think you look better without glasses.
Industry News
Saturna Capital Enhances Shifa HSAs to Align With Independent, Top Tier Industry Standards
Saturna Capital Corporation announced enhancements to its Shifa HSA, designed to meet the specific needs of Muslim investors which aligns with religious beliefs while maintaining top-tier industry standards. The Shifa HSA offers Islamic-compliant mutual funds, and the debit card associated with the spending account does not accrue interest (riba).
Best Practices
The Pivotal Role of Health Savings Accounts in Financial Wellness Programs
Employer-sponsored financial wellness programs are essential for fostering a financially secure and productive workforce. Health Savings Accounts play a crucial role in these programs by offering a tax-efficient way to save for medical expenses and build long-term financial security.
Employee Stress Over Finances Soars, Benefits Leaders Respond
As benefits leaders grapple with how to best support employers in the coming year, a new report recommends they review health plan offerings and consider adding an HSA option; offer or increase 401(k), HSA or FSA match; consider adding a lifestyle spending account focused on financial wellness; and work with brokers or benefits providers to better educate employees on how to maximize benefits.
HSAs & Retirement
Don’t Forget Long-Term Health Expenses When Planning for Retirement Years
One action people can take while working to ensure that they can cover their medical costs in retirement is to maximize their HSA contributions. The most strategic thing to do is to pay expenses out of pocket and allow the HSA to continue to grow. The IRS allows you to reimburse yourself out of an HSA for expenses incurred in the past and they do not have to be in the same tax year.
Democrats and Republicans Finally Agree on Something: America Faces a Retirement Crisis
A new survey recently uncovered a rare point on which Republicans and Democrats seem to agree: America faces a retirement savings crisis. Three-quarters of both Republicans and Democrats are concerned about “not being able to maintain their standard of living” in retirement. Only about half of American households have retirement savings accounts.
Maximizing Your HSA
Get the Most Out of Healthcare Savings Accounts
Advisors have many ways to create tax efficiencies for clients, but HSAs frequently get lost in this conversation. Most clients likely appreciate the nominal benefit of an HSA—saving for healthcare expenses. What many of them—and even more than a handful of advisors—fail to grasp is just how valuable a tax mitigation tool they can be.
Don't Have an HSA Yet? You're Going to Regret That
If you don't have an HSA yet, you're missing out on one of the best tax breaks and a bonus way to invest for retirement. With annual enrollment coming up, you have another chance to get on board with an HSA for 2025. If you don't open an HSA or don't qualify, you'll miss out on some big tax benefits and long-term investment growth. Here's a few reasons why not opening an HSA is a move you'll regret.
Consumer-Driven Health Care
Preventive Care Is Free by Law, but Many Americans Get Incorrectly Billed
Even though preventive care is supposed to be free by law for millions of Americans thanks to the Affordable Care Act, many don’t receive recommended preventive services, especially racial and ethnic minorities and other at-risk patient groups. The main reason for this is that no specific regulations were put in place to determine exactly which services should be exempted, or for whom, or how often.
Apple Watch Sleep Apnea Detection Gets FDA Approval
The U.S. Food and Drug Administration published approval for sleep apnea detection on certain Apple watches. The feature requires 10 nights of sleep tracking data spread out over a 30-day span to determine whether a user may have the condition. During that time, it also offers insights into nightly sleeping disturbances.