HSA News for October 19, 2026
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Bill Would Allow Larger HSA Contributions for New Parents
A new bill introduced by Rep. Matt Van Epps (R-TN) would allow families to contribute an additional $2,000 to an HSA for each qualifying child born or adopted during the tax year to help parents cover the cost of maternity care, delivery, and newborn medical expenses.
Compliance Corner
That Wearable Tracks Your Health. But Is It Qualified for Tax-free Reimbursement?
Wearable digital health technology tracks data that often feed AI programs that flag anomalies, helping physicians monitor patients' chronic conditions around the clock. Increasingly, though, people without symptoms buy these devices, often with subscriptions, simply to track their vital signs and sleep. Can they reimburse the cost tax-free from an HSA or Health FSA? The IRS has just clarified the answer.
New IRS Medical Expenses FAQ Addresses Wearable Devices
The IRS has added a new FAQ to its existing guidance regarding when costs related to nutrition, wellness, and general health qualify as medical expenses that may be paid or reimbursed by a health FSA, HSA, or HRA. The new FAQ addresses when the cost of wearable devices that track bodily functions or other health-related information will qualify as reimbursable medical expenses.
Have an HSA? Check This Number During Open Enrollment to Avoid Paying a Penalty
If you have an HSA, pay close attention to the deductible on your health insurance this open enrollment season. Most workers go on autopilot, selecting the same benefits as the year before, but doing so this fall could turn into a costly mistake. HSAs require enrollment in a high-deductible health insurance plan, and the minimum deductible to qualify is increasing in 2027.
HSA Studies & Analysis
Report: Investments Make Up Majority of Health Savings Account Assets
Health Savings Accounts held nearly $192 billion across 42.6 million accounts as of June 30, with investments now making up the majority of HSA assets, according to a mid-year report from Devenir. Invested balances reached $100 billion with about 4.7 million accounts holding investments by mid-2026.
2026 Midyear Devenir HSA Research Report
Devenir found that HSA assets increased 20% year-over-year, while account growth accelerated modestly to 7%. Investments now represent 52% of all HSA assets with 11% of all HSAs holding invested assets. The number of accounts holding at least $10,000 reached 4.4 million, and nearly 1.9 million accounts now hold $25,000 or more.
Market Trends
KFF: Individual Health Insurance Enrollment Fell 18 Percent in June
Enrollment in ObamaCare and other health insurance plans on the individual market dropped by more than 4.5 million people over the past year, according to an analysis by health research organization KFF. The latest figures do not account for the drop in enrollment expected from the Trump administration’s recent announcement that it is cancelling ObamaCare plans for 760,000 people due to instances of alleged fraud.
After Booting 760K People From ACA Plans, Trump Administration Has Added Some Back
After that it had cut 760,000 people from the ACA rolls last month, the Trump administration announced that not all of those kicked off were fraudulently enrolled. Insurance industry sources said that a small number of people whose coverage should not have been canceled have been reinstated. More could follow in the coming weeks if enrollees discover they are uninsured when they go to use their coverage.
Employers Cutting Weight Loss Drug Coverage Get a Capped Option
Employers weighing whether to end coverage of GLP-1 weight loss drugs have a new defined-contribution option that stops short of eliminating access—a GLP-1 HRA. Alight says the HRA can run alongside HSA and HDHP designs in line with IRS rules, and employers can use it on its own or as part of a wider weight management approach.
HSAs & Retirement
Working Past 65? Here’s How Medicare Works If You Have Employer Health Insurance
If you're over 65 and still working, and you have health insurance through your job or your spouse's job, you can sign up for Medicare now, or you can wait. Although enrollment in Medicare could reduce your out-of-pocket costs and gaps in coverage, it's best to look at all the potential mistakes you could make before deciding.
Maximizing Your HSA
How to Get All the Tax Benefits From Your Health-Savings Account
HSAs continue to gain ground with Americans. And while the accounts aren’t new, this is a good time of year to delve into HSA rules and wrinkles. That’s because healthcare plan open enrollment is coming soon for many employees, and favorable changes have taken effect for many self-employed workers and early retirees. Plus, some HSA benefits become more relevant as Boomers age.
From HSA Saver to HSA Investor: See the Full Potential of Your Health Savings Account
HSAs are widely recognized for their triple tax advantages, yet many HSA holders miss out on one of the most powerful aspects of these accounts: investing. Leveraging the investment potential of an HSA can create long-term financial security, particularly for retirement healthcare expenses. Here’s how to shift from an HSA saver to an HSA investor and maximize your account’s potential.
How Do HSAs Help Americans Cover Medical Expenses?
HSAs allow account owners to experience freedom to pursue and pay for treatments that their insurer rejects. And they produce peace of mind. More work needs to be done to bring these benefits to more Americans, including those who already are eligible to fund an account. Here's how HSAs help Americans cover medical expenses.
10 HSA Secrets (and 2 Things That Need to Change)
Here are 10 secrets about HSAs, but they don't have to be secrets. For all their advantages, HSAs come with a significant limitation: not everyone can open or contribute to one. Roughly half of Americans are unable to leverage an HSA, and the barriers fall into two main categories.
HSA Day 2026 Resources: Be Ready When Life Happens
Every year on October 15, National HSA Awareness Day brings employers and industry experts together to highlight the value of HSAs. This year’s theme is a reminder that an HSA can help employees prepare for healthcare expenses today while supporting their financial goals for the future. These HSA Day 2026 resources are a great place to start.
Consumer-Driven Healthcare
Health Insurance Open Enrollment: Use This ‘Algorithm’ to Pick a Plan, Financial Advisor Says
Choosing a health insurance plan each year isn’t always a straightforward decision. Households are grappling with such choices amid soaring healthcare costs, in some cases forcing them to make difficult financial trade-offs during. Here are some important things to consider during open enrollment this year, such as, "Do you want an HSA?"