HSA News for July 27, 2026
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Senate Panel Advances Legislation Capping Private Insurance Insulin at $35
Bipartisan legislation to cap the cost of insulin at $35 for people with private health insurance advanced through a key Senate committee on July 22, with six Republicans joining every Democrat on the panel, but its future remains uncertain. The 2022 Inflation Reduction Act capped insulin prices to $35 per month for seniors on Medicare. Since then, many pharmaceutical companies have voluntarily reduced their prices.
HSA Industry News
HSA Deposit Rate Update – June 2026
HSA deposit rates remained steady across balance tiers in the second quarter of 2026. The $1,000 balance tier remained at 0.45%, the $10,000 tier at 0.55%, and the $25,000 tier at 0.60%. The $1,000 tier was unchanged for the first time since March 2025. Rates at the $10,000 and $25,000 tiers have remained unchanged since September 2025.
HSA Studies & Analysis
Many Americans Are Missing Out on Tax-Free HSA Growth, Survey Finds
Many Americans are missing out on the opportunity to grow them. More than half (57%) of HSA participants surveyed by Bank of America in a report released July 21 say they’re not actively investing their balance. One in four participants say the reason they’re not doing so is they either weren’t aware it was an option or they don’t understand how HSA investing works.
What Are the Prospects for Health Savings Account Expansion in This Congress?
The prospects of drafting, scoring, reviewing in committee, and passing a reconciliation bill in Congress - particularly the Senate - are not strong. Nevertheless, HSA administrators have stated their case so that, if a bill emerges, medical care becomes more affordable to millions of American consumers. Time will tell if additional HSA expansions happen or not.
Market Trends
Cost of Healthcare in Retirement Rises to $185,500, Fidelity Estimates
A 65 year old retiring this year should budget an average of $185,500 to cover health care and medical costs across retirement, according to Fidelity investments. The 7.5% jump from last year is attributed to broader healthcare trends, including rising treatment costs, higher utilization of care, and mounting expenses linked to chronic conditions. The analysis excludes potential long-term care costs.
HSAs & Retirement
Your Healthcare Could Now Cost $185,500 in Retirement — and That Doesn’t Include Long-Term Care
A 65-year-old retiring in 2026 can expect to spend an average of $185,500 on healthcare and medical expenses throughout retirement, not including long-term care, according to a new analysis by Fidelity Investments. HSA remain a central tool in that approach for eligible clients due to their triple tax advantage and balances roll over each year. But 40% of HSA owners have not yet invested those balances, leaving potential growth untapped.
This Is the Ideal Retirement Strategy if You Want to Keep Your Healthcare Costs Down
Did you know that your out-of-pocket health costs could be dramatically higher or lower depending on when you retire? A lot of it comes down to whether you retire a few years before enrolling in Medicare at age 65 or a few years after, according to new research from Milliman. The difference is striking and, to some pre-retirees and retirees, surprising.
The Triple-Tax-Free Account Most Workers Leave Empty: An HSA at 65 Works Like a Second 401(k), Without the RMDs
HSAs offer three tax benefits (deductible contributions, tax-free growth, and tax-free medical withdrawals) and, unlike 401(k)s and IRAs, have no required minimum distributions. After 65, non-medical HSA withdrawals are taxed like a 401(k), and out-of-pocket medical receipts from prior years can still be reimbursed tax-free later.
Americans Say They Need $1.2 Million to Retire. Many Won't Get Close
Americans think they'll need an average of $1.2 million to retire comfortably, yet many expect to retire with less than half that amount, according to a new survey. Rising costs, credit card debt and competing expenses are making it difficult for workplace retirement plan participants to close the gap. Just 30% believe they will reach the $1 million mark before retiring, while 51% expect to have less than $500,000 saved at that point.
Maximizing Your HSA
Healthcare and Medical Expenses Cost an Average of $185,500 for Retirees—Here’s How You Can Prepare
Rising health care costs could be making future retirees anxious. But there are strategies to help you get ahead of the game and start boosting your healthcare funds, like utilizing a Health Savings Account. These accounts have tax-related benefits for now and later, along with a potentially big nest egg for health expenses during your golden years.
Consumer-Driven Healthcare
Are GLP-1s FSA & HSA Eligible? What to Know About Coverage and Reimbursement
GLP-1 medications like Ozempic, Mounjaro, Wegovy and Zepbound fall under the umbrella of “qualified medical expenses” according to the IRS. HSA- and FSA-eligible medications must be prescribed by a licensed health care provider for a diagnosed medical condition but not cosmetic weight loss or general wellness.