HSA News for January 20, 2026
HSA News is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
ACA Sign-ups Fall as Higher Premiums Push People Off Plans
As open enrollment for Affordable Care Act insurance comes to an end, people are moving to cheaper plans or dropping their coverage entirely, according to state and federal data. In some states, new sign-ups are down and more enrollees are shifting to bronze plans, the lowest-tier option, which come with high deductibles.
Trump Unveils Health Care Affordability Plan
President Trump unveiled an affordability framework for health care that includes many proposals that Trump or Congress have pushed in recent years, but it does not call for a subsidy extension. The plan also builds on Trump’s calls to send billions in subsidies directly to Americans rather than insurance companies.
Compliance Corner
If They Are Not on You Medical Plan, You Cannot Pay Their Expenses? Not Exactly.
To comply with federal tax law, you must understand whose qualified expenses you can and cannot reimburse tax-free from your Health Savings Account. Do not confuse this list with the family members who are covered on your medical plan. Those two lists may or may not coincide.
Federal Tax Code Excludes Some Veterans from Funding a Health Savings Account
HSA eligibility for veterans to open and fund an HSA is not affected if your care is a select preventive service or treatment for a service-related injury, illness, or condition. If you receive any other care through the VA, your HSA eligibility is affected – but only for three full months following the date of your care.
Industry News
WEX and Health-E Commerce Team to Ease HSA and FSA Reimbursements
Health-E Commerce has launched a partnership with WEX that will integrate the company’s FSA Store and HSA Store offerings into the WEX benefits portal. Account holders can access FSA Store and HSA Store directly from their WEX benefits portal and pay for eligible items directly from their FSA/HSA account with a single click.
Market Trends
Direct Primary Care in Wisconsin Sees Increased Demand as Health Insurance Prices Skyrocket
People with health insurance through the government marketplace are finding that prices have jumped significantly from the previous year. Facing these price hikes, some people are going with the catastrophic, higher-deductible plans and then seeking out direct primary care practices to supplement their coverage. The demand is expected to increase after enhanced subsidies for the Affordable Care Act lapsed at the end of last year.
Many Workers, Retirees Believe $1M Needed in Retirement Savings, but Save Far Less
According to a new survey, about 40% of retirees said they believe they need at least $1 million to retire. The average surveyed retiree reported having $288,700 in savings but believed $823,800 is presently needed to retire. At the other end of the spectrum, 29% of respondents said they did not have any retirement savings at all.
Nearly Half of Retirees Are Short on Emergency Cash: Study
The Center for Retirement Research has published a new in-depth analysis of the emergency spending challenges facing U.S. retirees which found that only 58% of all older households have enough cash to cover their unexpected expenses for just a single year. 27% of households are unable to cover just one year of unexpected expenses, even after spending all their cash and retirement assets.
1 in 3 Employees Is Tapping Their Retirement Savings
38% of employees say they've tapped their retirement funds, and a third (33%) plan to do so within the next year, according to a new report. This raises broader concerns about financial stress, especially across younger generations with nearly half (46%) of Gen Z workers reporting they've already taken out funds.
HSAs & Retirement
Retirement Savings Secret Revealed: How One Overlooked Account Can Boost Your Nest Egg
If you're like most people, you see an HSA as an account to cover medical expenses and nothing more. That's a shame, because these accounts come with triple-tax benefits that can supercharge your retirement savings and transform your HSA into an indirect retirement account. They're worth a second look.
Should You Enroll in Medicare in 2026?
If you're turning 65 this year, or you were 65 before 2026 started, you may be considering enrolling in Medicare before December 31. But should you? Ask yourself these key questions to find out. For example, once you enroll in Medicare, you're no longer able to make HSA contributions. So if you have an HSA, you may want to wait on your Medicare enrollment if you're still covered through a qualifying group health plan.
Maximizing Your HSA
More Americans Can Contribute to an HSA Under the OBBB -- Are You Eligible?
As of January 1, 2026, all Bronze and Catastrophic plans are now HSA-compatible. In addition, individuals enrolled in certain direct primary-care service arrangements can now contribute to an HSA. That's very good news for many Americans, as HSAs are a great way to save and invest money that can be used for all sorts of medical expenses. Check your health plan to see if you're eligible under the new guidelines.
Is Direct Primary Care Right for Your Health Needs?
If you'd like to have a stronger relationship with your primary care doctor, and quick access to them when you want to chat or schedule an appointment, direct primary care may be worth a look. Beginning January 1, 2026, DPC membership fees are a qualified medical expense for tax-free HSA withdrawals, and enrolling in a DPC arrangement no longer disqualifies someone from being able to contribute to an HSA.
Consumer-Driven Health Care
Cash Prices Frequently Undercut Insurance Rates at Texas Hospitals, Study Finds
A new study found that paying cash for services is typically a lot cheaper than the typical negotiated rate charged to insurance companies. Zooming in on 79 common procedures, the data revealed that four times out of five, the patients who paid cash received a discount larger than insurance companies were able to negotiate for reimbursement.