HSA News for September 8, 2025
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
Compliance Corner
Can Employers Match Employees' Payroll Contribution to Encourage HSA Funding?
I want to encourage my employees to contribute to their HSAs. Can I offer a matching contribution, as I do when I nudge them to contribute to the 401(k) plan? Yes. Matching contributions are an underutilized tool at an employer’s disposal to encourage employees to make regular deposits into their HSAs. However, you cannot launch a matching-election program unless you have a Cafeteria Plan.
Industry News
UMB Buys $32.5M HSA Book, Adding to Massive Portfolio
UMB Financial has bought a $32.5 million portfolio of HSA deposits from Old National Bancorp, growing its HSA book by about 1%. Old National is offboarding some 8,000 HSA accounts as it digests its acquisition of Bremer Bank, which closed earlier this year.
Flex Raises $15M to Expand HSA/FSA Payments Access
Flex has raised $15 million in Series A funding to expand its platform that enables HSAs and FSAs to be used directly at checkout for qualifying purchases, including on top fitness and wellness products. The company said its customer base grew fivefold over the past year, adding brands such as Dermstore, Therabody, Omnilux and NordicTrack.
Market Trends
Employers Eye High-Deductible Health Plans, HSAs as Labor Market Slows
A soft labor market is holding down sales of HSAs, but it's also increasing employers' interest in shifting to health benefits programs that combine high-deductible coverage with HSAs. Health insurance costs have been increasing two or three times faster than wages, and case studies show how shifting to use of HSA-compatible health coverage can hold increases down.
HSAs & Retirement
Milliman: Healthcare Costs for Retirees Dip in 2025
In a surprising turn of events, Milliman reported that a healthy 65-year-old couple enrolled in Medicare and with supplemental Medigap Plan G Plus Part D coverage will need to save an average of $388,000 for healthcare costs—a $7,000 decrease compared to last year’s estimate.
Healthcare Expenses in Retirement Could Cost You $165K. 7 Financial Pros Share Their Secrets on How to Prepare Smartly
Even with Medicare, you’re likely going to shell out a hefty amount of money for healthcare in retirement. The numbers are eye-opening, but that doesn’t mean there aren’t ways to save money now for the later years in life. From CEOs to CFPs, we asked financial experts their best tips on how to effectively strategize and save for future healthcare costs.
Maximizing Your HSA
To HSA or Not to HSA? It’s a Complicated Question
I approach the question of, “Is an HSA right for me next year?” with a six-part analysis that is useful for understanding the general value of an HSA vs. a non-HSA in a given year. The specific value can only really be understood in hindsight depending on the details of your health plan, your income, your tax rates, and your spending. But keep in mind that an HSA can be invested for 20-30 years with tax-free growth and tax-free withdrawals.