HSA News for October 13, 2025
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
IRS Announces Changes to Health-Related Accounts for 2026
The Internal Revenue Service announced increases to the contribution limits for health-related spending accounts in 2026. The announcement came one day after the agency began furloughing employees because of the ongoing government shutdown.
IRS Halts Operations, Furloughs Employees as Shutdown Drags On
The Internal Revenue Service has begun to furlough employees and shut down most of its operations as the duration of the government shutdown has surpassed its contingency plan. According to the IRS’ updated contingency plan, the agency will retain 53.6% of its 74,299 employees, while the rest will be furloughed until the government reopens.
HSA Studies & Analysis
Report: Health Savings Account Total Assets Approach $159B
HSA assets reached nearly $159 billion across roughly 40 million accounts at the halfway point of 2025, according to a new report by Devenir. Total assets grew 16% year-over-year while total accounts grew 6%. Devenir projected that the HSA market will surpass 47 million accounts and exceed $208 billion in total assets by the end of 2027.
2025 Midyear Devenir HSA Research Report
HSA assets expanded meaningfully in the first half of 2025 to reached nearly $159 billion across about 40 million accounts by midyear, up 16% year-over-year for assets and 6% for accounts. Investment balances benefited from strong market returns and growing recognition of HSAs’ long-term advantages. Investment assets rose to nearly $73 billion, a 30% year-over-year increase.
Compliance Corner
You Cover Only Yourself. Can You Reimburse Family Members' Expenses Tax-free?
Your spouse and tax dependents do not have to be enrolled in your medical plan for you to reimburse their qualified expenses tax-free. Their expenses are qualified for tax-free distributions from your HSA based on their tax relationship to you when they incur the expenses. These family members don’t have to be HSA-eligible themselves or enrolled in your medical coverage at the time the qualified expenses were incurred.
Best Practices
How HR Can Boost HSA Participation During Open Enrollment
HR teams have a prime opportunity to spotlight HSA benefits to help employees ease financial stress and build long-term security. HR can explain how to effectively use these accounts by helping employees visualize real-life scenarios and by breaking down these benefits into practical terms for employees.
Market Trends
Why Healthcare Costs Will Keep Rising
Healthcare costs, and consequently employee benefit costs, have been growing at an alarming rate in recent years, and they're not slowing down. Understanding today's drivers of healthcare costs can help you make informed decisions about your coverage and financial planning. Here are the six key factors driving rising healthcare costs.
HSAs & Retirement
Worried About Healthcare Costs in Retirement? Don't Just Pad Your IRA or 401(k).
If you're worried about the cost of healthcare in retirement, you may be inclined to boost your IRA or 401(k) contribution rate. While this is a smart idea, you may want to focus on contributing to an HSA if you are able to do so. An HSA is a combination savings and investment account you can use to pay for healthcare expenses, combining the best perks of traditional and Roth IRAs into one account.
How to Use Your Health Savings Account to Pay Medicare Premiums
There seems to be a lot of confusion about whether you can pay your Medicare premiums from your HSA. Most retirees pay Medicare premiums that are deducted from their Social Security checks. So technically, you can't pay your Medicare premiums directly from your HSA. However, you can still reimburse yourself for the Medicare premiums paid via your Social Security check.
Maximizing Your HSA
HSA Day 2025: 8 Must-Know Rules for Every HSA User
HSAs aren’t one-size-fits-all—they benefit spenders, savers, investors, and cautious individuals alike. Whether you’re using funds immediately, saving for the future, or looking to invest, HSAs offer unique advantages. Here’s eight essential rules to know about HSAs as they continue to grow in importance while Americans face rising medical costs.
Consumer-Driven Health Care
Choosing an HDHP? You May Want to Pair It With an HSA: Here's Why
HSAs have become increasingly popular in the past 15 years as many people seek to control their healthcare expenses by enrolling in qualifying high deductible health plans to take advantage of their low-cost nature. Do these HDHPs and HSA plans make sense for everyone hoping to save on medical costs and tuck away money in an HSA?