HSA News for June 9, 2025
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
HSA Studies & Analysis
What's Missing from the House-Passed Bill? More HSA Expansion Provisions.
The large tax bill that passed the House of Representatives last month expands and enhances the HSA opportunity for many Americans. It does not address all the enhancements that the industry and patient advocacy groups have championed during the past decade. More work remains to be done, regardless of the outcome of this legislation.
Compliance Corner
7 Basic Rules of an HSA You Need to Know
According to a recent survey, HSAs are one of the top three benefits employees want more education on. And only half of those surveyed said that they understand the differences among the different health spending accounts. Understanding the basic rules of an HSA is critical in driving employee participation. Here are some of the basic rules.
When Do Nondiscrimination Rules Apply to Employer and Employee HSA Contributions?
Employers can establish or amend a Cafeteria Plan to allow employees to elect to direct a portion of their pay to a Health Savings Account before taxes are applied. When employees make pre-tax payroll contributions, both employer and employee contributions are governed by Cafeteria Plan nondiscrimination rules.
Market Trends
Annual Cost of Insuring a Family Tops $35,000
The cost of covering a family of four through workplace insurance now exceeds $35,000 — nearly triple what it cost 20 years ago as annual growth in health costs have far outpaced wages, according to the 2025 Milliman Medical Index. Employers have been wary of passing health cost increases to workers in a tight labor market, but the rising demand for costly care may force a reckoning.
Younger Americans Rewriting Rules of Retirement
According to a recent study, respondents across every generation reported they are saving sooner, planning to retire earlier and expecting to live longer, anticipating living from 35 through 37 years in retirement. Respondents from Gen Z started saving at 24, aim to retire at 61, and more than one-third (34%) think it is likely they will live to 100.
Best Practices
How to Help Employees Save for Retirement Without Sacrificing Healthcare
Employers play a crucial role in helping employees balance their healthcare and retirement savings goals. By offering the right mix of benefits, education, and incentives, you can empower your workforce to build financial security for both the short and long term. When employees feel confident about their financial future, they are more engaged, productive, and loyal—creating a win-win for everyone.
HSAs & Retirement
Five Smart Moves for Retirement Healthcare: From HSAs to Medigap Policies
Retirement planning has as much to do with amassing and spending your nest egg as it does with determining your health care needs. Health care expenses are one piece of the puzzle for retirees and pre-retirees. Nobody wants to think about getting ill or injured when they get old, but it’s inevitable for many, requiring planning for healthcare costs in retirement.
Healthcare Before Medicare: Bridging the Coverage Gap
You probably plan to rely upon Medicare for health insurance in retirement, but you can't actually sign up for the program until you're 65. If you retire before then, you'll need to find another way to cover your healthcare costs in the meantime. One option is a Health Savings Account. HSAs aren't insurance, but they can help you cover your healthcare expenses.
5 Ways Gig Workers Can Build Real Retirement Security Without Traditional Benefits
HSAs might be the best-kept secret in retirement planning for gig workers. The triple tax advantage makes HSAs particularly powerful for gig workers who must maximize every tax break. HSAs offer a rare combination of flexibility, tax efficiency, and long-term value that’s often overlooked.
Maximizing Your HSA
Digging Into My HSA Accounts Taught Me an Important Five-Figure Lesson in Investment Fees
If used strategically, an HSA can be a powerful tool. However, like many financial products and services, there's fine print that's important to be aware of and easy to overlook, especially when you're thinking about the six-figure dollar amount you just tacked onto your nest egg.
Transferring My Health Savings Account Was a Wild Ride I Ultimately Abandoned — but Not Without Major Takeaways
Combining HSAs proved to be similar to my experience combining 401(k)s — a stressful, months-long process I hope to never have to do again. I set low expectations — and am glad I did because the process was marred by misplaced information, antiquated portals, and hidden tax guidelines. Ultimately, I abandoned the transfer altogether. Here's exactly how it went.