HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Employer Plans Could Face Mandate to Provide 6 'Free' Health Care Visits Per Year
Three Democrats have reintroduced a bill that would require health insurers and employers' self-insured plans to cover at least three primary care visits and three outpatient mental health care or addiction treatment visits per patient per year before the patient had reached the deductible, and without imposing other cost-sharing requirements.
Compliance Corner
7 Things to Know About HSA Compliance
HSAs offer an excellent opportunity for participants to save money on healthcare expenses and for employers to support their employees’ wellness needs in a cost-efficient way. But there are HSA rules and regulations you and your employees need to follow in order to stay compliant. Here are some important HSA compliance topics.
Is Your DPC Arrangement Disqualifying? Understanding the Fine Print.
Patients with direct-primary care arrangements are no longer automatically prohibited from opening and contributing to an HSA, but only if the DPC arrangement is not disqualifying. A qualified DPC arrangement must satisfy two requirements -- provide only traditional primary care services, and limit fees to $150/month (singled) or $300/month for a family.
Must an Employer Verify an Employee’s Eligibility for an HSA?
An employer is not required to verify an employee’s HSA eligibility before contributing to the employee’s HSA. The employer is only responsible for determining whether each employee is covered under an HSA-qualified plan sponsored by that employer, and the employee’s age, for determining eligibility to make catch-up contributions.
HSAs & Retirement
HSAs and Retirement: Understanding How RMDs Affect Retirement Tax Planning
Required Minimum Distribution" rules do not apply to Health Savings Accounts. Thus, these accounts allow you to maximize their initial investment (no taxes applied), increase the spending power of your distributions for qualified expenses (no taxes applied), and avoid RMDs that may negatively affect your financial picture.
Home Care Costs Grow Much Faster Than Inflation
One year of home care now costs more than twice the average retiree's annual Social Security benefits, and costs are growing much faster than inflation, according to an AARP analysis. Most older adults will need such personal care services, which aren't covered by Medicare. The majority wind up paying out of pocket or leaning on family members.
Maximizing Your HSA
The HSA Receipt Trick: Pay Medical Bills Now, Reimburse Yourself in 30 Years, Grow the Money Tax-Free in Between
If you have an HSA, you can pay a medical bill out of pocket today, hold the receipt for 10, 20, or 30 years, and reimburse yourself tax-free whenever you want, while the money inside the HSA grows untouched. This turns your HSA into a stealth Roth IRA with no contribution income limit.