HSA News for May 27, 2025
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Health Savings Accounts Are Poised to Get a Big Boost in Trump's Tax Package
Tucked inside Republicans’ "big, beautiful" tax package, which passed the House on May 22, are provisions expanding HSAs, including the biggest contribution increase ever for next year, along with a range of other benefits. Here’s a rundown of the provisions included in the legislation that would be effective January 2, 2026, if signed into law.
House Committee Advances Provisions to Expand HSAs and Increase Owner Flexibility
Readers who follow HSA legislation closely will not be surprised by the provisions in the House-passed tax bill. They are not new. Let's examine the provisions, ranked in approximate order from most valuable to least valuable against a goal of expanding the HSA opportunity for more Americans.
Bipartisan Primary Care Enhancement Act Sponsored by Senator Cassidy
HSAs could be used to pay for direct primary care under a bipartisan bill recently sponsored by Sen. Bill Cassidy (R-LA). If enacted, the bill would provide for the treatment of DPC service arrangements as medical care, and ensure that such arrangements do not disqualify deductible HSA contributions.
Compliance Corner
Oops! That Expense Was Not Qualified! How Do I Correct My Error and Remain Compliant?
I withdrew funds from my Health Savings Account to pay a deductible expense. Then my insurer reversed the claim, reimbursed the provider in full, and my doctor sent me a refund. Can I return the funds to my HSA? Yes, you can return the funds to your HSA, but you may owe taxes depending on the timing.
Market Trends
Concerned About Economic Conditions, Workers Decrease Savings
According to a recent study, about 39% of employees surveyed said they have reduced their 401(k) contributions in reaction to current economic conditions, and 67% of respondents said they are reducing their contributions across all savings accounts—up four percentage points since 2024.
HSA Best Practices
How an HSA Can Support Your Employees’ Mental Health
There are a variety of ways you can promote mental health in the office. One way is to make sure your employees know they can use their HSAs to improve their financial wellness and save money on a variety of mental health-related expenses. Here are some of the eligible expenses that can be paid tax-free from an HSA.
HSAs & Retirement
The Five Biggest Stealth Costs in Retirement
Unexpected bills can be a major source of stress for retirees, according to a recent study. Many retirees haven't saved enough, with the magic number to retire comfortably sitting at $1.26 million or higher, according to recent studies. Here's a look at the biggest stealth costs in retirement: #1. Health care costs.
When to Sign Up for Medicare Without Penalty If You Are 65
Turning 65 is a key milestone for Medicare eligibility, but knowing when to enroll can save you from costly penalties and gas in coverage. If you're still working (or your spouse is) and have health insurance through an employer, your enrollment timeline may look different from someone who retires at or before 65. Here's a clear explanation of how and when to sign up for Medicare to avoid penalties, based on your situation.
Consumer-Driven Health Care
CMS Updates Hospital Price Transparency Guidance Following Executive Order
The Centers for Medicare & Medicaid Services (CMS) updated its hospital price transparency guidance May 22, requiring hospitals to post the actual prices of items and services, not estimates. CMS said hospitals must display payer-specific standard charges as dollar amounts in their machine-readable files (MRFs) whenever calculable.
The Self-Care Step Too Many Women Skip
What keeps women from regularly engaging in preventive care? Recent reports point to challenges with access, experience, cost, and gaps in understanding women’s health. Here are a few strategies health plans and employers can implement to address these barriers for optimal women’s health.
Why Are Women Skipping Their Mammograms?
While healthcare costs may be on the rise, one in three women are skipping their mammograms even when it's covered at $0 out of pocket, according to newly released data. Delaying screening can result in 18 percent higher costs for breast cancer treatment. Better communication and more reminders may be needed.