HSA News for September 8, 2026
HSA news is compile weekly by Mr. HSA, Roy Ramthun.
News from Washington
HSA Council Endorses Hardworking Seniors Act
The American Bankers Association HSA Council voiced its support for legislation that would allow working seniors on Medicare to contribute to HSAs beginning in 2027. Current law prevents working seniors enrolled in Medicare Part A from contributing to an HSA — even when they remain covered by an employer’s HSA-qualified health plan.
Compliance Corner
Oops! A Family HSA Contribution for a Self-Only Employee. Can It Be Corrected?
My payroll department accidentally gave a family contribution to two employees who have self-only coverage. Can we retrieve the excess contribution? Because HSA contributions vest immediately, if the total contribution is less than that employee’s statutory maximum annual contribution, you cannot recover any of your excess contribution.
Can an Employer Contribute to a Worker's Spouse's HSA? Yes, But . . .
Employers can extend their HSA contributions to the HSA-eligible spouse of an employee who waives coverage, but the employer cannot avoid paying their portion of payroll taxes. The employer contribution is taxable to the spouse, but she can deduct the contribution on her personal income tax return to recoup federal and state income taxes (in most states).
Market Trends
Employer Health Costs Expected to See Sharpest Increase in 20 Years: Survey
The cost of employer health benefits is projected to jump by the highest degree in more than 20 years next year, according to new projections from Mercer. Employer health benefits have been trending up since 2022, and if costs go up as expected, it will be the largest spike in employer health spending since 2003.
The Benefits Your Employees Aren't Using Are Costing You Money
When employers offer both an HDHP with an HSA and a richer traditional plan, employees routinely choose the higher-premium option assuming it offers better protection without running the numbers for their own situation. The result is higher out-of-pocket costs and an underutilized HSA that could have provided meaningful tax-advantaged savings.
Nearly Half of Small Business Employees Are Not Offered Health Insurance: Congressional Budget Office
A September analysis from the Congressional Budget Office revealed that in 2024, roughly 53% of small business workers were at firms that offered health insurance, leaving just under half without the option. Small businesses employed about 38 million of 139 million private-sector workers.
HSAs & Retirement
Retirees Can Pay Medicare Premiums Straight From an HSA, Tax-Free. The Average One Pays From Checking.
Medicare enrollment halts new HSA contributions, but existing balances cover qualifying premiums indefinitely. Medigap doesn't qualify, but Part B, Part D, and Advantage do. In the 22% bracket, reimbursing $3,035 in annual Medicare premiums from an HSA saves hundreds yearly and compounds into five figures over 20 years, but most pay from an already-taxed checking account instead.
Transition to Medicare: What Are the Rules Around My Health Savings Account?
HSA owners cannot contribute for any month that they are enrolled on disqualifying coverage, including enrollment in any Part of Medicare. Seniors who enroll on Medicare Part A after the month of their 65th birthday receive mandatory retroactive coverage up to six months from their date of application and may need to adjust their HSA contributions.
Still Covered by Your Spouse’s Employer Insurance at 65? You Can Skip Medicare Entirely, Penalty-Free but Only if One Form Gets Signed When the Coverage Ends
If you turned 65 and your spouse’s employer plan still covers you, you may not need to sign up for Medicare Part B on your birthday. Federal rules let you postpone Part B and its monthly premium without the permanent late enrollment penalty. But that protection works only if the coverage qualifies and you file the right paperwork when the coverage ends.
Maximizing Your HSA
The Only Account the IRS Never Taxes Going In, Growing, or Coming Out: 3 ETFs That Belong Inside It
HSAs offer something no other account does: contributions are deductible, growth is untaxed, and qualified medical withdrawals come out tax-free. Triple tax-free. Paying your doctor bills out of pocket, and treating your HSA as a stealth retirement account, the investments inside it deserve the same care as a Roth. Here are three low-cost ETFs that give you a complete long-horizon portfolio.