HSA News for May 26, 2026
HSA news is compiled weekly by Mr. HSA, Roy Ramthun
News from Washington
Senate Bill Would Let HSAs & FSAs Cover Dietary Supplements
Senators Kevin Cramer (R-ND) and John Curtis (R-UT) have introduced a bill to amend the Internal Revenue Code to recognize up to $250 annually for dietary supplements as qualified medical expenses for reimbursement from HSAs, FSAs, and HRAs. A related bill was introduced in the House of Representatives by Rep. Darin LaHood (R-IL) and others.
ACA Deductibles Reach Record High as Membership Losses Slated to Continue: KFF
The average deductible for an ACA plan jumped more than $1,000 between 2025 and 2026 according to a new analysis from the Kaiser Family Foundation. The spike is the result of hundreds of thousands more Americans shifting into cheaper, high-deductible bronze plans after more generous subsidies expired.
Compliance Corner
Shoeboxes, Substantiation, and Tax Compliance: An HSA Owners' Guide
Health Savings Account owners do not have to produce documentation to receive a tax-free distribution, and they self-report their activity. But they must retain documentation to substantiate the tax-free distributions that they report on their income tax return. Be sure your documentation is complete and available when you need it. Absence may be costly.
Market Trends
Family Healthcare Costs Reach $37,824, Analysis Finds
For the average person, healthcare costs rose 7.9% in 2026 to $8,460, which is the highest annual increase in more than a decade, according to the 2026 Milliman Medical Index. For a family of four, healthcare costs reached $37,824. The Index measures healthcare costs covered by a typical employer-sponsored health insurance plan.
Study: Brokers Increasingly Recommending ICHRAs to Employers
ICHRAs have been gaining steam, and a new survey suggests that these plans may be hitting the mainstream, according to a new study. 56% of brokers are now recommending the program as an option. The number of brokers who said they moved at least one client to an ICHRA plan reached 37% in 2026, increasing from 15% in 2024.
Health System Revenue Heads Increasingly Turning Their Attention to Patients' Share of the Bill
Patient collections are playing a bigger and bigger role in health systems’ total revenues, bringing a new focus on the difficulties organizations face in securing timely, or any, payments for their services, a new survey report warns. Patients are now increasingly the payer. And health systems across the country are designing a new blueprint for this reality.
HSAs & Retirement
Delaying Social Security Past 65 Can Create a Medicare Trap
A tax penalty for contributing to your HSA sounds unlikely, but it happens more often than you'd expect. When Medicare Part A coverage gets backdated, which it can by up to six months, any HSA contributions made during that window become excess contributions in the eyes of the IRS. This is one Medicare rule worth understanding before it turns into a tax problem.
Half of Retirees Report Expenses Higher Than Expected
According to a new report, nearly half (49%) of retirees report that their expenses in retirement are higher than they expected, and more than half (58%) don’t know how long their savings will last. The majority (58%) say that they expected Medicare to cover a greater share of their healthcare costs. Notably, 64% of retirees wish they had done more planning prior to retirement.
I'm 66 and Have $85,000 in My HSA. Should I Spend It All by a Certain Age?
I understand the tax consequences my estate will face for any unused portion of my health-savings account. At what point should I start taking funds from my HSA, which currently has a balance of around $85,000? Do I want to run it down by a particular age? The answer for you is to spend that money when you need it most and when it would benefit your overall financial situation to have tax-free money. Otherwise, let it grow.
Maximizing Your HSA
9 Out of 10 HSA Owners Are Missing a Tax Break That’s Even Better Than a Roth IRA
Many people treat an HSA as a way to cover doctor visits, prescriptions, or other medical bills as they come up. Money rarely stays in the account for long. But some HSA holders pay for healthcare out of pocket when they can afford to and leave some or all of their HSA money invested—allowing the balance to grow tax-free for years or even decades.
Part Two: 10 Employer Hacks to Help Employees Build Their HSA Balances
Introducing an medical plan with an HSA option is bound to fail if the company does not support the offering. In part 2, we shine the spotlight on five additional ways employers can take simple, specific steps to increase employee knowledge, make the medical plan more attractive, encourage enrollment, and deliver education beyond open enrollment.
How an HSA Can Support Your Employees’ Mental Health
A recent survey indicates that financial and health factors are the top drivers influencing mental health in the U.S. Money was the top factor at 52%. Employers have a variety of ways to promote mental health in the office. One way is to educate employees that they can use their HSAs to save money on a variety of mental health-related expenses.
Consumer-Driven Health Care
How to Help Employees Combat High Healthcare Costs
Rising healthcare costs are a growing concern for employees and employers alike. With premiums, deductibles, and out-of-pocket expenses increasing, employees may struggle to afford necessary care. Here’s how you can help employees navigate and reduce their healthcare expenses (HINT: encourage them to take full advantage of tax-free accounts).