HSA News for September 2, 2025
HSA News is compiled weekly by Mr. HSA, Roy Ramthun.
Compliance Corner
How Do Employers Who Offer Up-Front Contributions Handle a New Employee?
We make a $1,800 up-front lump-sum contribution each January to our employees’ HSAs. We just hired a new employee in March, and she’s enrolled in our HSA program. Do we give her the full $1,800? Do we prorate it? Do we give her nothing? You have a lot of flexibility in this situation. Your Cafeteria Plan should describe your contribution policy for new enrollees who join after the beginning of the plan year.
New Telehealth Safe Harbor Increases Design Flexibility of HSA-Qualified Medical Plans
The new telemedicine safe harbor offers an opening for HSA-qualified plans to cover monitoring of chronic conditions below the deductible, with little or no patient out-of-pocket spending. This provision will improve the overall health of patients with the most common chronic conditions - the illnesses that often disproportionately drive claims costs. The safe harbor represents and financial and medical breakthrough that is now permanent.
Can You Use Your HSA or FSA to Pay for Weight Loss Expenses?
According to the IRS, the cost of a weight-loss program is an eligible medical expense for an HSA or an FSA if the program is prescribed to treat a specific condition diagnosed by a healthcare professional. These conditions can include obesity, diabetes, hypertension, or heart disease. If it’s for general wellness or appearance, it’s not eligible.
HSA Best Practices
Maximizing HSAs: What the OBBB Act Has Changed
Employers play an essential role in shaping the future of HSAs. Continuing to offer employer contributions and investing in effective communication will help drive adoption. Messaging should reinforce that HSAs aren’t “use it or lose it” benefits and remind employees of the triple tax advantages and flexibility HSAs provide.
Turning HSA Owners Into Savvier Investors
According to one survey, 6 in 10 recognize that their HSAs are an important part of their retirement planning, yet only 9% are investing that money. The wide gap between HSA owners and investors calls for better education, rather than reprimanding. Practical messaging is more motivating than financial jargon like the “triple tax advantage,” and for messages to be effective, they need to suit an individual’s life stage and financial goals.
Market Trends
Employees Want More Than Traditional Benefits to Combat Financial Stress
At a time when benefits expectations are broadening beyond health plans and retirement, employers can help alleviate these problems by offering HSAs and other compatible benefits such as FSAs and Emergency Savings Accounts to help employees plan and save for expenses and reduce financial stress.
Can ICHRAs Fill Small Businesses’ Health Coverage Gaps?
According to a recent survey, a large majority (89%) of small and mid-size employers said they were worried they will not be able to offer their employees’ health benefits in three years, due to rising costs and administrative burdens. Most respondents (75%) expressed interest in offering individual coverage health reimbursement arrangements (ICHRAs).
HSAs & Retirement
The Big Changes to HSAs and What They Mean for Planning
HSAs remain one of the most versatile tools in a client's financial planning toolkit, allowing tax-free savings and investment growth for health care expenses. As health care costs continue to rise, financial advisors say HSAs are a crucial option for many retirees when it comes to paying for medical expenses. The One Big Beautiful Bill Act has opened the door to millions of new HSA-eligible individuals.
Maximizing Your HSA
This Healthcare Benefit Provides a Triple Tax Advantage — But Many Employees Don’t Use it
HSAs are one of America’s best-kept financial secrets. The benefit is a 401(k)-level financial instrument to support proactive healthcare and meet emergencies if they arise. In other words, a few more dollars this year might lead to lifesaving care in a decade. The easiest comparison is to think of an HSA as a 401(k) for healthcare — except it’s usable now and eligible medical-expense withdrawals remain tax-free forever.
6 Common HSA Mistakes to Avoid
An HSA allows you to save for a wide range of health care expenses on a tax-advantaged basis. Better still? You can even use HSAs as an extra retirement savings account. The only problem with HSAs is that some of us don’t use them to their fullest potential. So today, I’m going to introduce you to several common HSA money mistakes—and show you how to avoid making them.
HSA vs. HYSA: Which Option Is Better for Saving for Medical Expenses?
An and a high-yield savings account can both help you prepare for medical expenses — but they work very differently. One offers tax advantages and long-term growth potential, while the other provides flexibility and easy access to cash. So, which option is better for covering your healthcare bills? Here's what you need to know.
Consumer-Driven Health Care
Why Your Health Insurance Expenses Might Soar in 2026, and Steps to Take Now
Health insurance costs are expected to rise sharply in 2026. Employers expect to shift more expenses to workers, and insurers project an increase in market premiums. Experts recommend reviewing plan details carefully, taking advantage of an HSA, and calling your provider to see whether you qualify for financial assistance or a payment plan.