HSA News for October 2, 2023
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Ways and Means Advances Legislation Expanding HSA Benefits
The House Ways and Means Committee approved legislation on September 28 that would allow more individuals to save for and afford health care costs by expanding eligibility requirements and contribution limits for Health Savings Accounts. The legislation now goes to the full House of Representatives.
Rep. Moore Introduces Bill to Provide Better Access to HSAs
U.S. Rep. Blake Moore (R-UT) introduced legislation designed to provide patients with better access to their HSAs. H.R. 5690 helps patients access the benefits of their HSAs by allowing them to pay for expenses that were incurred during the 60-day period between when their coverage began and when the HSA was established.
HSA Compliance Corner
Are Medical Premiums a Qualified Expense? Maybe.
You can reimburse tax-free some, but not all, medical premiums from an HSA prior to age 65. You can reimburse premiums for medical coverage only if you're collecting unemployment benefits or you continue your group coverage by exercising your COBRA rights. When you turn 65, you can reimburse your Medicare premiums except for Medicare supplemental coverage.
Embedded Deductibles and Out-of-Pocket Maximums
Embedded deductibles/OOPMs occur, if at all, only in family coverage. An embedded deductible or OOPM is an individual, lower deductible/OOPM inside a family deductible/OOPM. Once the individual hits this lower threshold, the plan pays as if the individual hit the deductible/OOPM, even if the total for the family is less than the overall family deductible/OOPM.
HSAs & Retirement
Vanguard Says You Should Do This Before Putting a Dime in an IRA
Move over IRAs. HSAs are muscling into your retirement savings turf, at least according to asset-management giant Vanguard. In fact, a new study from Vanguard says budget-constrained savers should fund an HSA account before any type of IRA.
How To Keep Healthcare Expenses From Ruining Your Fabulous Retirement
There is a persistent myth that healthcare is magically free after you’ve retired, partly thanks to Medicare. Ask any retiree with a health condition and I assure you their medical care is not free. Healthcare expenses in retirement may cause you to worry about running out of money. One of the best ways to prepare is to contribute to a Health Savings Account before you retire.
Worried About Major Health Expenses in Retirement? How To Prepare Your Finances Now
A recent GOBankingRates survey found that nearly 59% of Americans are worried about running out of money and 51% feel their biggest worry is how they’re going to pay for healthcare expenses. The best thing to do now is to prepare your finances so you can be ready during retirement. One great option is to use a Health Savings Account.
Majority of Americans Now Worry About Higher Taxes on 401(k)s and IRAs
Americans are increasingly worried about taxes on retirement income from 401(k)s and IRAs increasing in the future, according to a new study from Allianz Life Insurance Company of North America. Seven in 10 Americans (72%) worry that higher taxes in the future will impact their retirement income from tax-deferred accounts such as a 401(k) or IRA.
Consumer-Driven Health Care
Costco to Offer Virtual Medical Care for as Low as $29
Costco recently partnered with healthcare platform Sesame to offer members the option of virtual primary care visits for as low as $29. A more involved standard lab panel and virtual follow-up consultation with a provider will cost just $72, while online mental health visits will cost $79. Members can also enjoy additional savings on specialty healthcare appointments.
7 Ways Anyone Can Save on Out-of-Pocket Health Care Costs
There are several ways to save on your medical bills without sacrificing care. For example, opening a Health Savings Account may be an option for those with high-deductible insurance plans. Here’s how to take control of your family’s health care costs and save money.
Sephora Beauty Hack Revealed: Your Insurance Covers These Products
A TikToker has revealed that insurance plans can cover, perhaps surprisingly, the expense of your favorite skin care and beauty products at Sephora. In the clip posted on TikTok, "Dianis" unveiled the list of luxury products your FSA and HSA can be spent on, including Clinique, Murad, SuperGoop! and First Aid Beauty. But many skin care enthusiasts are unaware of it.