HSA News for February 17, 2026
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
CMS Plans to Roll Back Limits on Non-Standard ACA Plan Options
The Trump administration released a proposed rule that would discontinue limits on the plan designs insurers can offer on the state health insurance marketplaces. Previously, insurers were limited to offering two non-standard plan designs per metal level. CMS said it also no longer intends to require plans to offer standardized options on the exchanges.
HSA Studies & Analysis
DataPath Releases New Whitepaper Revealing Rapid Growth of HSAs and ICHRAs Amid Shift to Personalized Health Benefits
DataPath, Inc. released a new whitepaper that analyzes the rapid expansion of account-based health benefits and outlines strategic implications for employers, brokers, TPAs, and financial institutions. The whitepaper identifies three drivers of the transition from one-size-fits-all group health plans to solutions that offer greater choice, portability, and cost predictability.
Bank of America: 401(k) and HSA Balances Increased in 2025
According to Bank of America, workers increased their 401(k) balances by 13% in 2025, reaching an average of more than $113,000. The average HSA balance increased to $5,600 at year's end, up from $5,030 at the end of 2024. Also, 15% of account holders are investing for potential future growth (up from 14% the previous year).
Compliance Corner
My Employee Must Enroll on Medicare. Does She Lose HSA Eligibility Six Months Early?
Many working seniors can delay enrolling on Medicare with no penalty for late enrollment if they are covered on their own or their spouse's group medical plan. Therefore, they can delay this disqualifying coverage and continue to fund their HSA. Two classes of working seniors, however, cannot avoid enrollment in at least one Part of Medicare.
Looking to Move a Retirement Account Balance to an HSA? Follow the Rules.
I have a balance in my retirement plan at work that I’d like to roll over to my HSA. Can I execute this transaction? No, at least not directly. The source of rollovers from a retirement account to an HSA is restricted to IRAs. If you can move funds from your 401(k) or 403(b) plan to an IRA, you can then execute the rollover. Otherwise, you cannot.
Market Trends
Health Savings Accounts Gain Popularity as Investment Vehicles
More Americans are putting their HSA dollars to work through investments, a move experts say could make it easier to cover medical bills that come with getting older. Around 4 million HSAs held at least some of their HSA dollars in investments at the middle of last year. Investment assets now represent 46% of all HSA assets.
When Health Dollars Move to Individuals, Infrastructure Will Decide Who Wins
Renewed interest in shifting health care funding toward individual-controlled accounts signals a potential shift in how health care purchasing power flows through the system, moving closer to the individual. When control of dollars shifts, benefit design, risk allocation, and employee engagement models reorganize. The big question is how to prepare for a market where employees increasingly act as direct purchasers of care.
Americans Without Access to Workplace Retirement Plan Probably Not Saving at All
A new report illustrates just how important access to a retirement plan at work is to Americans’ ability to save. The report examines how workers across demographic groups are saving—or failing to save—for retirement. The study also examines how rising costs and competing financial pressures are undermining the long-term economic security of American workers.
HSAs & Retirement
Census Data Shows Severe Lack of Retirement Savings Among Employees
A new report finds a serious gap in retirement preparedness, with workers that had any amount of defined contribution plan savings having a median savings of only $40,000. When workers with no savings were included, the median amount was only $955. In the oldest group of employees (aged 55 to 64), the median amount saved was $30,000.
Health Care Expenses Can Significantly Reduce Retirees' Income—Here's What To Know
Even with Medicare, out-of-pocket health care costs still eat into people's retirement income. After medical costs, the typical retiree is left with about 88% of total income and 71% of Social Security benefits. Choosing the right Medicare coverage and planning ahead using accounts like HSAs while you're working can help you better manage health care costs after you stop working.
Can I Delay Medicare Part B if I Work Past 65?
I am turning 70 in June but wish to continue working. I have an employer health plan for a company that employs over 20 workers. When I apply for Social Security benefits must I also apply for Medicare Part B or an Advantage Plan? If your employer coverage meets specific criteria, you are not likely required to sign up for Medicare Part B or an Advantage Plan right now.
Maximizing Your HSA
How to Use Your HSA and FSA for Disaster Recovery
While insurance is often the primary safety net for individuals and families dealing with the impact of natural disasters, FSAs, HSAs, LSAs, and emergency funds can also play an important role in recovery. Here’s how you can use these resources to cover critical expenses and get back on your feet faster.
Here Are 4 Ways to Pay Less Tax Next Year
Look at your tax return not as a chore, but as an opportunity. Do the math, follow the money, and figure out how you get from the income you earn to the tax you owe. Then change your behavior and pay less tax next year. For example, If you put $1,000 in an HSA, you are potentially saving $250 in taxes. And the money won’t be taxed when you spend it, provided you follow the rules.
Consumer-Driven Health Care
Insurance vs. Cash Pay: When Skipping the Copay Actually Saves Money
You paid for expensive health insurance, so using it should always be the cheapest option, right? Incredibly, the distorted economics of the pharmaceutical industry mean that your insurance copay is often higher than the cash price of the drug. Blindly handing over an insurance card can result in overpaying by hundreds of dollars a year. “Cash pay” has moved from a desperate option for the uninsured to a savvy strategy for the insured.
8 Procedures That Can Be Cheaper Without Insurance
Hospitals and clinics are willing to offer deep discounts—often 40% to 60% off—to avoid the administrative nightmare of fighting with insurance companies for payment. By simply asking “What is the cash price?” you can bypass your deductible and save thousands of dollars on routine care. Here are eight specific procedures where keeping your insurance card in your wallet is the smarter financial move.