HSA News for July 6, 2026
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Rep. LaHood's Bill Expanding Health Savings Account Eligibility
Rep. Darin LaHood (R-IL) has introduced legislation that would allow individuals to keep an HSA even if their spouse is enrolled in a Flexible Spending Arrangement. If approved, the measure would allow spouses covered under separate health plans to contribute to their own HSAs while maintaining greater flexibility over healthcare spending.
Compliance Corner
Can Employers Contribute to HSAs of Workers Covered on Medicare Part A?
Once an HSA owner is no longer eligible, no one can contribute funds to their account, including their employer. The best an employer can do is contribute to an HRA so that employees that are not HSA-eligible may receive similar assistance. But the HRA must be restricted to employees who are not eligible to fund an HSA.
Employee Benefits in an S Corporation: Key Issues Every Company Should Know
A more-than-2% shareholder can establish and contribute to an HSA if eligible. But employer contributions cannot be excluded from income and must be included in the shareholder’s W-2. The shareholder cannot make HSA contributions on a pre-tax basis through payroll deduction but may claim a deduction on their individual tax return.
Industry News
Optum Financial Expands Consumer Healthcare Financing Capabilities with Acquisition of Alegeus Technologies
Optum closed the acquisition of Alegeus Technologies on July 2. Adding Alegeus capabilities to the Optum Financial portfolio is expected to create new opportunities to serve a broader range of consumers through healthcare payment, funding and account management solutions.
HSAs & Retirement
HSAs and Retirement: Understanding Taxation of Social Security Benefits
Health Savings Accounts are not retirement accounts as defined by the federal tax code. However, they do represent a tax-efficient opportunity for you to accumulate balances that you control your taxable income, including the percentage of your Social Security benefit that is taxed. They represent the optimal balance of tax friction (none) and control.
Working Past 65 With an HSA? Enrolling in Medicare Turns Your Deposits Into a 6% Penalty.
Your enrollment in Medicare Part A may be backdated up to 6 months, which could make recent HSA deposits into excess contributions penalized at 6% annually. A single year of excess HSA contributions left uncorrected can accumulate nearly $1,500 in IRS excise taxes over 5 years. Be sure to know when to stop HSA deposits.
Maximizing Your HSA
The 2 Types of HSA Users: Why Their Account Balances Are So Different
The average HSA balance ($5,336 at the end of 2025) hides two very different kinds of account holder. For many, an HSA functions like a checking account for healthcare. But there’s also a small, fast-growing group treating their HSAs like a long-term savings account for medical costs far in the future—especially in retirement. The gap between those two groups isn’t subtle.
The HSA Move High Earners Are Prioritizing Over 401(k) Catch-Up Contributions in 2026
A 58-year-old high salary employee that maxes their 401(k) contribution every year just learned her $8,000 catch-up is now Roth-only. The opportunity she counted on for late-career income smoothing disappeared on January 1. That is the moment to look at the Health Savings Account, the most tax-efficient dollar left in the code.
Consumer-Driven Healthcare
Provider Networks Outrank Premiums as the Top Factor in Health Plan Selection
Provider networks and out-of-pocket cost drive health-plan choices, the most recent Consumer Engagement in Health Care Survey from the Employment Benefit Research Institute found. Despite widespread familiarity with consumer-directed health plans, concerns about out-of-pocket costs continued to be the most common reason traditional plan enrollees did not select these options.