HSA News for December 1, 2025
HSA news is compiled by Mr. HSA, Roy Ramthun.
News from Washington
For Republicans, It’s Crunch Time on Health Care
GOP leaders return to Capitol Hill this week facing a year-end deadline on Affordable Care Act subsidies without a unified plan for how, or even whether, to extend the expiring benefits for millions of Americans. The debate is posing a huge headache for GOP leaders who now face a no-win decision.
What's in GOP's Plan for Government-Funded, Tax-Exempt Health Savings Accounts
Lawmakers are wrestling over the best approach to providing government aid to Americans struggling with high health care costs as premium subsidies are set to expire at the end of the year. Congressional Republicans are considering tax-exempt HSAs as their preferred vehicle to deliver on President Trump’s call to send taxpayer-funded health care subsidies directly to consumers instead of insurers.
House Democrats Propose HSA Reforms
House Democrats, led by Rep. Lloyd Doggett of Texas, have introduced the HSA Consumer Protection Act to tighten rules on Health Savings Accounts. The bill would impose income limits on HSA contributions, a two-year reimbursement window, stricter documentation rules, and change the definition of qualifying withdrawals.
Trump Administration Moves to Drop Defense of Fiduciary Rule
The Labor Department has filed a motion withdrawing its appeal of court challenges to the so-called fiduciary rule issued during the Biden administration. The motion to dismiss the appeal filed in the U.S. Court of Appeals for the Fifth Circuit indicated that the other parties do not oppose the motion.
HSA Studies & Analysis
HSA Catch-Up Contributions Don't Hurt Retirement Savings
A new study shows that the ability to make HSA catch-up contributions is a strong nudge for participants to contribute more, including those who were previously constrained by the HSA contribution limit. The study also found that the HSA catch-up does not negatively impact retirement saving.
HSAs And FSAs Were Designed to Give Consumers Control and Clarity of Their Healthcare Spending — Why Isn’t This Happening?
Congress created HSAs and FSAs to empower Americans with control over their health care spending and save money by using pre-tax dollars to pay for their care directly. But the majority of Americans still don’t feel comfortable with how they should be using them. The underlying issue here though is not a lack of awareness. It is a lack of utilization.
Compliance Corner
What Is a MedSupp Plan? And How Does It Fit in the World of Health Savings Accounts?
Most seniors enrolled in traditional Medicare purchase Medicare supplement coverage to reduce their out-of-pocket financial exposure. You cannot reimburse premiums for "MedSupp" insurance from your HSA, but this should not deter you from funding your HSA. MedSupp coverage may help you manage your HSA balances. Here’s how.
HSAs & Retirement
Older Americans Should Plan to Retire With a 6-Figure HSA. But Many Aren’t Budgeting for This 1 Costly Roadblock. Are You?
One expert says you should aim to retire with a six-figure HSA, but many HSA holders aren’t aware that these accounts can be used as a retirement savings vehicle and aren’t taking advantage of the opportunity to build savings. But there’s one costly roadblock that many aren’t budgeting for. Here’s what you need to know.
The Overlooked Account That Could Supercharge Your Retirement Savings
If you're like most people, you see an HSA as an account to cover medical expenses and nothing more. That's a shame, because these accounts come with triple-tax benefits that can supercharge your retirement savings and transform your HSA into an indirect retirement account. They're worth a second look.
Maximizing Your HSA
Types of OTC Drugs and Health Supplies Covered by FSA/HSA
Over-the-counter drugs are medications you can buy without a prescription. Examples include certain allergy, pain, and cough medications. The CARES Act expanded the list of OTC drugs that you can buy using your HSA or FSA. Learn more about what an HSA and FSA are and what drugs or health supplies are covered.
Consumer-Driven Health Care
HDHP vs. PPO: Choose the Health Plan That’s Right for You
Your health plan drives many of your decisions during open enrollment. Nearly two-thirds of large employers provide their employees with the choice of an HDHP and a traditional health plan, such as a PPO, during open enrollment. Does your employer offer options? If so, let’s start by breaking down the two plans.