HSA News for July 14, 2025
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Trump’s ‘Big Beautiful’ Bill Expands Access to This ‘Powerful, Yet Underutilized’ Financial Tool
Next year, more Americans will have access to a powerful financial tool. Embedded in President Trump’s sweeping budget bill are three provisions that expand access to tax-advantaged HSAs. Unlike an FSA, the money doesn’t have a “use it or lose it” provision, and you can take it with you should you switch jobs. You can even invest the money in the likes of stocks, bonds or exchange-traded funds.
Health Benefits Firms Hope for One Big Beautiful 'Health' Bill
Health account firms are hoping that Congress will find a way to save at least some of the 11 health account provisions that showed up in an early version of the One Big Beautiful Bill Act but were left out of the version that President Donald Trump signed into law, such as CHOICE arrangements and additional modifications to HSAs.
Tax Law Signing May Lead to New Fight for PBM, HSA and HRA Changes
Now that President Donald Trump has signed the tax and spending package into law, members of Congress may renew the fight to pass major PBM, HSA and ICHRA bills. The National Association of Business and Insurance Professionals has already put those items on a list of "remaining priorities for congressional action."
House Bill Could Let Workers Use HSA, FSA or HRA Cash to Pay for Wearable Tech
Rep. David Schweikert (R-AZ) has re-introduced the WEAR IT Act, a bill that would let workers spend up to $375 per year from HSAs, health FSAs or HRAs on wearable devices used to collect or analyze physiological data for maintaining a person’s health.
Compliance Corner
Congress Allows First-Dollar Telehealth Coverage for High Deductible Health Plans in Reconciliation Bill
Congress has made permanent a pandemic-era telehealth provision for high-deductible health plans, meaning millions of Americans can now access covered telehealth services before they meet their deductible and still be eligible for their HSAs. The provision will now allow employers and digital health companies to work together on unique benefit designs that could significantly reduce the cost of digital health services for patients.
The Reconciliation Bill Didn't Address Working Seniors. What Does It Mean?
It's unfortunate that Congress did not fix the "working seniors" Medicare problem in the recent budget reconciliation bill. In the meantime, employers have more discretion than they imagine to help their older workers who collect Social Security benefits. They must make sure that their benefit design helps - or at least does not harm - this population.
Which Coverage Doesn't Disqualify You from Contributing to a Health Savings Account?
You can maintain certain coverage without losing your eligibility to open and fund an HSA. The list of permitted coverage includes dental and vision coverage, critical illness coverage, hospitalization coverage, accident coverage, short-term and long-term disability coverage, and long-term care insurance.
HSAs & Retirement
Are You Prepared for Retirement Health Care Costs?
When most people think about retirement, they imagine travel, hobbies, and finally having time to relax. But there’s one major expense that often catches retirees off guard: health care. The costs can add up quickly — and many Americans aren't prepared. No matter your age, it’s never too early (or too late) to plan — every generation can take steps now to protect their future finances. And an HSA is one of the best tools available.
Why Gen Z and Millennials Should Embrace HSAs
Gen Z and millennials are rewriting the playbook on how they save, spend, and invest. Yet, one of the most underutilized tools in their financial arsenal is the HSA. Despite its potential to revolutionize both short-term healthcare spending and long-term wealth building, many young professionals overlook the power of an HSA. It’s time to change that narrative.
Consumer-Driven Health Care
I Play Pickleball in Retirement. Is It HSA-Eligible?
While the provision to make gym memberships HSA-eligible didn't make it into the final version of the Trump budget bill, you may still be able to claim certain expenses for staying active in retirement. For instance, I often put in contact lenses when I go out to play. Prescription contact lenses and glasses are HSA-eligible. Here are a few other examples of HSA-eligible expenses for retirees who like to stay active.