HSA News for February 24, 2025
HSA News is compiled by Mr. HSA, Roy Ramthun.
News from Washington
Trump Administration to Defend ACA Preventive Services Mandate
The Trump administration told the Supreme Court that it intends to defend the Affordable Care Act's requirement that insurers cover certain recommended preventive services at no cost to patients. The Justice Department wrote in a brief that it will maintain the Biden administration's arguments in the case.
Trump Calls for 'Aggressively' Reducing IVF Costs for Health Plans
President Donald Trump released an executive order that calls for recommendations for reducing barriers to IVF procedures and "aggressively reducing out-of-pocket and health plan costs for IVF treatment." IVF treatments in the United States now cost $12,000 to $25,000 per cycle, and would-be parents may need two or more cycles to conceive.
Florida Rep. Steube Introduces Bipartisan Bill to Make Swimming Lessons Eligible for HSAs and FSAs
Representative Greg Steube (R-FL) introduced bipartisan legislation aimed at reducing drownings by making swimming lessons an eligible expense for HSAs and FSAs. The bill seeks to address the alarming rate of drownings in the U.S., particularly among children, by removing financial barriers to water safety education.
Compliance Corner
The HSA Distribution Rules: Part I
HSA distributions for unreimbursed qualifying medical expenses are tax-free where incurred after establishing the account by HSA owners or their eligible dependents. Individuals can also roll over or transfer HSA balances to another custodian without tax consequences. Non-medical distributions are subject to ordinary income tax and (if under age 65) a 20% additional tax.
Shopping for Prescription Drugs? The Best Price May Not Be Applied to Your Deductible.
If you choose to buy a prescription through a retailer’s promotional program, be sure you understand whether the price that you pay is applied to your deductible. Usually, it’s an either/or proposition: either you pay the discount cash price outside of insurance or you pay the full price through insurance and have your payment applied to the deductible. There are exceptions, however.
Market Trends
Plans Will Keep Preventive Screening Benefits Even if Supreme Court Zaps ACA Provision, Exec Predicts
The head of a screening test firm thinks that quality rating programs and market forces will cause employers and other payers to continue to cover common cancer screening tests, even if the U.S. Supreme Court kills the process that put the tests in the Affordable Care Act preventive health services package.
How Employers Are Enhancing Health Care Benefits Despite Rising Costs
In the past, employers often coped with rising prices by shifting costs to their employees or reducing benefits. But with today’s competitive job market, many are rethinking this approach. Some employers are adopting different strategies to keep their benefits steady, implement new initiatives, and address financial challenges associated with health costs.
Employers' New ICHRA Plans Need Help from Insurers, Exec Says
Employers finally have what looks like a practical way to give workers money that the workers can use to buy their own health coverage — but signing up for the plans is annoying. One expert says a key challenge with ICHRAs is that each insurer has its own enrollment process, which varies in complexity.
Women’s Growing Financial Power Could Reshape Wealth Management, CFP Reports
Women are playing an increasingly influential role in financial decisionmaking, both within their households and as part of the broader economy, as women attain higher education levels, enter the workforce in greater numbers and accumulate greater wealth, according to a new report by the Certified Financial Planner Board of Standards.
HSAs & Retirement
How to Take Advantage of Tax-Advantaged Accounts to Build Your Wealth
One of the best ways to save for retirement is to invest in tax-advantaged accounts. These accounts offer tax incentives for investing, which can save you money now and in the future. Plus, any money invested in these accounts grows tax-free. Here’s how to take advantage of these accounts to build wealth faster and save for retirement.
Medicare Recipients Should Spend Down Their HSA to Avoid Heir’s Tax Burden
You can’t contribute to an HSA once you’re on Medicare, but you can certainly spend the money you’ve accumulated. Eligible expenses include dental and vision costs as well as Medicare premiums. If anyone other than a spouse inherits the account, the HSA becomes taxable so you’ll definitely want to spend that money while you can.
Maximizing Your HSA
From HSA Saver to HSA Investor: See the Full Potential of Your Health Savings Account
Many HSA holders miss out on one of the most powerful aspects of these accounts: investing. While saving HSA funds for immediate healthcare costs is beneficial, leveraging the investment potential of an HSA can create long-term financial security, particularly for retirement healthcare expenses. Here’s how to shift from an HSA saver to an HSA investor and maximize your account’s potential.