HSA News for August 10, 2026
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Report: Health Savings Accounts Covered 62M Americans in 2025
Devenir and the American Bankers Association’s Health Savings Account Council released the results of the 6th annual Devenir & HSA Council Demographic Survey and resulting research report. The survey found that the 41.7 million HSAs that existed at the end of 2025 helped cover nearly 62 million Americans.
House Republican Revamps Health Care Package Effort
Rep. Eric Burlison (R-MO) has introduced a new, expanded version of his Great American Healthcare proposal. The bill is similar to one that he introduced in April which would make HSAs and HRAs easier to use. The new version of the Burlison bill would let a taxpayer use up to $5,000 in cash from an HSA to start a child's Trump account and let a family roll the cash from an HSA into a Trump account when the HSA holder dies.
HSA Studies & Analysis
2025 Devenir & HSA Council Demographic Survey Findings
HSAs provided coverage for approximately 62 million Americans by the end of 2025, with the largest percentage of account holders in their 30s and early 40s, according to a new report by Devenir and the American Bankers Association’s HSA Council. HSAs held nearly $174 billion across 41.7 million accounts, and account holders aged 55 and older had accumulated almost $75 billion in their accounts at the end of 2025.
HR Teams Cite Employee Complaints as the Top Trigger for Switching HSA Providers
A survey of more than 300 HR professionals by InComm Benefits found that 73% cite employee feedback as the top factor when reassessing spending account providers. Almost 60% of HR professionals said they regularly field questions from employees about their spending accounts. The most common questions involved eligible purchases, claims submission, account usage, and rollover rules.
A “Trump Account” HSA?
Our elected representatives in Congress seem to be particularly prone to "exponential growth bias." Otherwise, they might realize that starting a new federal program for healthcare similar to the Trump accounts, expanding and reconfiguring existing HSAs, could in a surprisingly few years take us to a tipping point where dramatic healthcare reforms would be feasible.
Compliance Corner
Must You Be Employed to Open and Contribute to a Health Savings Account?
I have been unemployed for the last two years. Can I open and fund a Health Savings Account? Being employed or contributing earned income only is not a requirement to open and fund an HSA. You can be unemployed, self-employed, or working for a company outside a traditional employer-employee relationship.
Claim Social Security After 65 and Medicare Backdates 6 Months. Keep Funding an HSA and the IRS Penalizes Every Dollar.
Workers who delay Social Security past 65 and keep funding an HSA trigger a hidden trap: Medicare Part A backdates up to 6 months, retroactively voiding those contributions.
The IRS charges a 6% excise tax on excess HSA contributions every year the money stays in the account, and Medicare enrollment permanently blocks any future absorption.
Market Trends
56% of Gen Z Has an HSA — and They're Using Pre-Tax Dollars to Fund a $2,400 'Sleepmaxxing' Habit
Sleep is a huge driver of Gen Z HSA spending. Over 15% of Gen Z orders on Truemed were sleep-related. Next up were Millenials, but only 10% of their orders were sleep related. Truemed says that some sleep brands could qualify for HSA spending depending on whether the buyer had a chronic sleep condition, such as insomnia. You might need a letter of medical necessity to make the HSA purchase, though.
HSAs & Retirement
How to Use Your HSA to Pay for Long-Term Care Expenses
If you will need long-term care when you are a senior, it can be costly. If you’re trying to figure out how to pay for long-term care expenses, such as assisted living or a nursing home, take a look at an HSA. It could be a financial lifesaver – or at least certainly helpful due to the tax breaks.
Medicare Has Never Paid for a Hearing Aid. Many Retirees Need One by Their Mid-70s, and a Pair Runs $4,600.
Medicare has excluded hearing aids since 1965, yet one in three adults aged 65 to 74 has hearing loss and a pair costs $4,600. Medicare supplement plans cannot fill the hearing aid gap because they only cover costs Medicare itself already covers. OTC devices, Medicare Advantage hearing allowances, and tax-free HSA withdrawals are the only realistic ways to reduce these out-of-pocket cost.
Original Medicare Has No Out-of-Pocket Maximum. In a Cancer Year, That 20% Can Become Almost Any Number.
Original Medicare imposes no annual out-of-pocket maximum, leaving beneficiaries liable for 20% of unlimited Part B costs after a $283 deductible. A cancer patient accumulating $150,000 in Part B services owes $30,000 in coinsurance alone, before imaging, radiation, or specialist visits.
Maximizing Your HSA
From HSA Saver to HSA Investor: See the Full Potential of Your Health Savings Account
HSAs are widely recognized for their triple tax advantages, yet many HSA holders miss out on one of the most powerful aspects of these accounts: investing. Leveraging the investment potential of an HSA can create long-term financial security, particularly for retirement healthcare expenses. Here’s how to shift from an HSA saver to an HSA investor and maximize your account’s potential.