HSA News for September 22, 2025
HSA news is compiled by Mr. HSA, Roy Ramthun.
HSA Studies & Analysis
Health Savings Account Balances Rise for Third Straight Year, PSCA Survey Finds
American workers increased contributions to their HSAs in 2024, and more invested those assets when given the opportunity, leading to an increase in average account balances for the third consecutive year, according to the Plan Sponsor Council of America’s 2025 HSA Survey. 20% of participants invested their HSA savings in 2024, up from 18% in 2023.
Compliance Corner
Confusion Abounds: Which HSA Provisions Did Congress NOT Pass in the OBBBA?
It is important to understand which new HSA provisions became law. Some that were proposed did not survive. Unfortunately, there remains a lot of misunderstanding among HSA owners. Their beliefs may create compliance problems down the road as they pursue strategies consistent with the provisions that did not become law.
How Does the HSA Establishment Date Affect the Tax Status of Qualified Distributions?
HSA owners can't reimburse qualified expenses they incurred before they established their accounts. When the HSA is established depends in part on the state whose trust laws govern the HSA. It’s also critical that you open and make an initial deposit into your account as soon as possible – ideally immediately – once you become HSA-eligible.
When Is Wellness an HSA-Reimbursable Medical Expense?
General health and wellness expenses don't qualify as medical care under the tax code. But a one-time, government warning alone doesn't eliminate confusion. Even with that alert, it's important to understand that "dual-purpose" expenses remain a gray area. Here are some of the key things HR and benefits professionals should know.
Best Practices
How AI Is Helping Employees Understand Their HSAs
HSAs can be a complicated benefit for employees to navigate on their own and an intimidating subject to broach with benefit leaders. According to data from the Plan Sponsor Council of America, sixty-nine percent of employees were unclear on HSA benefits and uses, despite half of employers offering them. Thankfully, AI can make education easy and accessible.
HSAs & Retirement
Should You Open an HSA to Prepare for Healthcare Costs in Retirement?
Healthcare is probably going to cost you more than you think in retirement. Saving for these costs is crucial. and covering them could consume your nest egg very quickly unless you have a plan. That plan should come in the form of an HSA. With the many benefits an HSA offers, there's no real reason not to invest in one if you are eligible.
Maximizing Your HSA
HSAs Are Great for Saving. The Problem Is Getting Young Adults to Sign Up for Them.
Financial advisors say that the upcoming open enrollment period presents an opportunity to educate younger clients about the advantages of high-deductible health plans. In addition to lower premiums, such plans also give participants access to HSAs—one of the most underused retirement vehicles, especially for young investors.
7 Pieces of Wellness Tech That Could Be Covered by Your HSA
These are some unexpected wellness tech products that may be covered by your HSA or health FSA. Just note that you should check for eligibility beforehand and that some items may only be eligible based on medical need, meaning you'll need a letter from your doctor. To ensure an item is HSA-eligible, consult your HSA provider's online dashboard or app.