HSA News for August 25, 2025
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Trade Associations Call on IRS to Change Tax Code to Align HSA/FSA with MAHA
Five trade associations for dietary supplements have written to the commissioner of the Internal Revenue Service to request changes to the tax code to permit the purchase of dietary supplements using HSAs and FSAs, provided that products meet certain requirements and are labeled with an FDA-authorized health claim.
HSA Studies & Analysis
Who Wins Under the New Law Defining Bronze Plans as HSA-Qualified Coverage?
The new budget law will make current and future enrollees in Bronze and Catastrophic health plans in the state health insurance marketplaces potentially eligible to contribute to HSAs in the new year. This will give millions more patients access to tax savings on their medical care. It is a long-overdue step in the right direction.
Compliance Corner
Can You Pay Your Spouse's Medicare Premiums From Your HSA? Be Careful!
You cannot reimburse your own, your spouse’s, or a tax dependent’s Medicare premiums tax-free from your Health Savings Account until you turn age 65. Any distributions before you reach age 65 to reimburse premiums are included in your taxable income. You also pay a 20% additional tax as a penalty for withdrawing funds for a non-qualified expense.
Can Your Child Open an HSA? Can You Reimburse Her Qualified Expenses Tax-free?
The potential benefits of Health Savings Accounts extend beyond the medical plan subscriber (employee whose company sponsors the medical coverage). Other family members may be eligible to open and fund their own HSAs. And the subscriber or spouse may be able to reimburse other family members' qualified expenses tax-free.
HSA Best Practices
New HSA Legislation Makes Education the Next Frontier for Benefits Leaders
Congressional passage of the recent tax legislation marks the most consequential expansion of Health Savings Accounts since their inception over two decades ago. Effective education and connecting with consumers where they are is the key to helping employees understand, adopt, and gain maximum benefit from an HSA. This need for clear communication is critical, especially when considering the sheer size of the newly eligible market.
Market Trends
Employers Project 10% Rise in Health Care Costs for 2026
U.S. employers project a median health care cost increase of 10% for 2026, according to new survey results from the International Foundation of Employee Benefit Plans. Employers have indicated that cost-sharing, plan design and purchasing/provider initiatives will be the most impactful techniques to manage costs.
Mercer: Employers to Shift More Health Care Costs to Workers in 2026
Employers are revisiting cost-management strategies as they face a third consecutive year of elevated cost growth in 2026. Given the current economic realities, slightly more than half of employers say they will ask workers to pick up more of the cost in 2026. One approach is to make a high-deductible plan more manageable by providing larger HSA contributions to low earners.
EBRI: New Research Finds ICHRAs Are Expanding Employee Access to Health Coverage, Especially Among Small Businesses
A new research report by the Employee Benefit Research Institute (EBRI) titled, found that ICHRAs are playing a role in expanding access to health coverage, particularly among small businesses, rather than displacing traditional group plans among larger firms.
Why More Employers Are Turning to ICHRA for Affordable Health Care Benefits
The Individual Coverage Health Reimbursement Arrangement (ICHRA) is reshaping the landscape of employer-sponsored health insurance, particularly for small to medium-sized businesses. The advantages of ICHRAs are becoming increasingly clear, indicating a potential shift in how health care is provided and funded in the workplace.
HSAs & Retirement
Why Many Facing Retirement No Longer Believe in Retiring at 65
According to a recent study, nearly six in ten pre-retiree investors said that their expectations for retirement have changed significantly in the last five years. Many also indicated they do not subscribe to traditional retirement norms and strategies in the same way that previous generations did and cited today’s economic environment as the cause.
Maximizing Your HSA
Maximizing HSAs’ Value
With the cost of health care continuing to rise, retirement savers need to use every tool available to save for their futures. But experts say one vehicle is not being used to its maximum value: HSAs. HSAs are triple-tax-advantaged and can be used to save for health care costs decades down the road. However, experts say the benefits are not widely understood.
Tips for Beginners and the Most Seasoned HSA Investor
If you are an HSA investor, you’ve probably heard about its investment potential and likely know it has retirement-planning perks that a 401(k) and IRA don’t have. And you’re investing to grow your funds so they increase at a much higher rate than they would in a cash account. But even the most savvy investors can get more out of their HSA.