HSA News for August 14, 2023
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Sen. Ted Cruz Introduces Bill Expanding HSAs
Sen. Ted Cruz (R-TX) introduced a bill that would expand HSAs by lifting the contribution limits to $10,800 for individuals and $29,500 for families, decoupling HSAs from high deductible health plans, and expanding HSAs to Americans covered by other health insurance and government health programs. A similar bill was introduced in the House by Rep. Chip Roy (R-TX).
HSA Studies & Analysis
Plan Sponsors Add Benefits to Blunt Inflation’s Sting
According to a new report by Goldman Sachs Ayco, 87% of employers are contributing more than $500 to employees’ HSAs to help lessen inflationary burdens, and 22% are switching to matching formulas and/or adding wellness incentives for these contributions, helping to encourage employees to save more and drive greater utilization of HSAs.
BofA: 401(k) Balances Up in 2023, But So Are Hardship Withdrawals, Loans
Bank of America recently expanded its quarterly Participant Pulse report series to examine engagement across HSAs and overall feelings of financial wellness, in addition to 401(k) trends. Key findings include HSA account balances increased by 11.9% over year-end 2022, and nearly 4 in 10 account holders contributed more than they withdrew in Q2. Baby Boomers invested their HSAs at higher rates than other generations.
Employers Shift Plan Member Costs in Wake of IRS Notice
The Employee Benefits Research Institute has released a new study that examines payment trends among employer sponsored health plans. The study found that, in general, employers shifted cost-sharing for preventive care services from deductibles to copayments and coinsurance after guidance from the IRS in 2019.
Do Employers Want to Cover More Services Pre-Deductible?
IRS guidance from 2019 allows HSA-qualified plans to cover more preventive services pre-deductible. One survey showed that three-quarters of plans expanded pre-deductible coverage as a result. Clearly employers prefer spending a small amount on prevention now versus more for acute treatment later. What's needed is more precise savings for the 14 tests and treatments.
HSA Compliance Corner
Do I Lose My HSA Eligibility at Age 65? Maybe. Maybe Not.
The intersection of HSAs and Medicare is tricky to navigate. Carefully consider when it makes sense to begin receiving Social Security because doing so will trigger mandatory enrollment in Medicare Part A, which will disqualify you from making additional contributions to your HSA. Be sure you understand the implications of deferring enrollment in Medicare if you are able to do so.
HSA Industry News
InComm Acquires Zenda to Bolster Healthcare Payment Offerings
Payments tech company InComm Payments has bought health savings platform Zenda, InComm's first expansion into the health benefits sector. With Zenda, the company can offer HSA and FSA solutions that use artificial intelligence to automate IRS rules and streamline account management. Zenda also automates tasks like expense-tracking and record-keeping.
HSA Best Practices
Gen Z Wants to Save for Retirement: Here’s How to Help
Gen Z is less afraid to ask for what they want and more willing to look elsewhere for better benefits. Interestingly, Gen Z says retirement benefits will be a key factor the next time they go job-hunting, according to one poll. An employer offering an HSA with a strong matching strategy that improves employees’ retirement readiness will be better able to compete for their services.
HSAs & Retirement
How to Use HSA in Retirement to Make the Most of It
Health savings accounts help you to meet qualified medical expenses. However, not many will know that it could prove a powerful tool in retirement if used correctly. In this article, I will discuss how to use an HSA in retirement to maximize its potential.
3 HSA Benefits You Don't Want to Miss Out on in Retirement
As you plan your retirement finances, it's important to keep in mind the high cost of healthcare. That's where an HSA and its benefits come in handy. An HSA allows you to contribute pre-tax money and take tax-free withdrawals for qualified medical expenses. Here are three HSA benefits you don't want to miss in retirement.
4 Little-Known Ways to Invest for Retirement
We’ve all heard of the 401(k) and Roth IRA, but those aren’t the only options to invest for retirement. Lesser-known investment strategies, like HSAs, can provide unique opportunities to bolster your retirement savings and enhance financial security. Here are four little-known ways to invest for retirement, shedding light on these hidden gems.
Maximizing Your HSA
How to Withdraw Money From Your HSA at an ATM
HSAs are a great tool for individuals to save and pay for qualified medical expenses. While HSA funds can be used to pay for medical expenses directly, there may be instances where you need to withdraw cash from your HSA. Here’s a step-by-step guide on how to withdraw money from your HSA at an ATM.
Consumer-Driven Health Care
New App Finds Cheapest Price for Medical Procedures
A new website claims it can take a CPT or DRG code that identifies your medical procedure and tell you what every provider near you charges for the same service. The site is great for anyone. But you’ll especially want to pay attention if you’re uninsured, on a high deductible health plan, or part of a health sharing plan.
Patients May Miss Out on Free Coverage of Cancer Screenings and Vaccinations
The Affordable Care Act has required most private insurers to fully cover a range of preventive services since 2010. But health insurers are failing to adequately inform consumers about preventive services they are entitled to receive at no additional cost, according to a new report from consumer representatives to the national trade group for state insurance regulators.