| News from Washington |
| Texas Judge Strikes Down Obamacare’s Free Preventive Services Requirement A federal judge in Texas struck down a key provision of the Affordable Care Act that requires insurers and employers to cover preventive services for free. The ruling applies nationwide and takes effect immediately. The decision jeopardizes access to treatment for millions of Americans who use free preventive services annually, and it leaves the door open for insurers to impose deductibles and copays for potentially life-saving screening tests. Read More |
| Senate Votes to End COVID-19 National Emergency The Senate passed a GOP-led resolution that would end the COVID-19 national emergency that has been in place since 2020. President Biden said he would sign the measure. The national emergency is different from the public health emergency, though the White House will end both on May 11. Read More |
| IRS Announces Tax Relief for Victims of Severe Winter Storm and Snowstorm in New York Victims of the severe winter storm and snowstorm beginning December 23, 2022, and ending December 28, 2022, now have until May 15, 2023, to file various individual and business tax returns and make tax payments, the IRS announced. Among other things, this means that eligible taxpayers will have until May 15 to make 2022 contributions to their IRAs and HSAs. Read More |
| IRS Announces Tax Relief for Victims of Severe Storms, Straight-line Winds and Tornadoes in Mississippi Victims of severe storms, straight-line winds and tornadoes in Mississippi from March 24, 2023, to March 25, 2023, now have until July 31, 2023, to file various individual and business tax returns and make tax payments, the IRS announced. Among other things, this means that eligible taxpayers will have until July 31 to make 2022 contributions to their IRAs and HSAs. Read More |
| HSA Studies & Analysis |
| Growth in HSAs Robust in 2022, Study Shows Despite last year’s stock market volatility, the growth in the number of health savings accounts accelerated in 2022, according to a new survey by Devenir. At the end of last year, approximately $104 billion was saved in 35.5 million HSAs, a year-over-year increase of 6% for assets and 9% for accounts. Account holders contributed $47 billion to their accounts in 2022, up 11% from the prior year, and withdrew $34 billion during the year, also up 11% from a year earlier. Read More |
| 2022 Year-End Devenir HSA Research Report While Health Savings Account asset growth in 2022 was held back by significant stock market headwinds, the growth in the number of HSAs accelerated. At the end of 2022, there were $104 billion in HSA assets held among 35.5 million accounts, a year-over-year increase of 6% for assets and 9% for accounts. Devenir currently projects that the HSA market will approach 43 million accounts by the end of 2025, holding almost $150 billion in assets. Read More |
| HSA Compliance Corner |
| Little-Known HSA Requirements: Receipts and Recordkeeping Because HSAs are so flexible and easy to use, people often forget (or aren’t aware) there are a few important rules to follow. For example, HSA owners are responsible for verifying eligibility of purchases and reimbursements. This means they need be able to prove eligible expenses in the event of a tax audit. Saving receipts will help document that expenses match HSA payments. Read More |
| Much-Anticipated Guidance Didn’t Deliver New Information The Internal Revenue Service recently issued guidance on services qualified for tax-free reimbursement from healthcare accounts. Unfortunately, the short guidance provided little new information. Instead, it affirms what the industry has long accepted about which expenses in the proverbial gray area are qualified for tax-free distributions from HSAs, health FSAs, and HRAs. Read More |
| The HSA Market |
| Rising Health Care Costs Should Set Off Alarm Bells for Plan Sponsors, Study Shows As inflation drives up health care costs and creates financial stress for employees, plan sponsors have an opportunity to offer health benefits that lessen the burden on participants, according to a recent webinar hosted by Mercer. While more employers have begun offering HSAs to participants, only 6% of those surveyed said they make larger HSA contributions to low earners. Read More |
| Lower-Paid Employees Are Declining Employer Health Insurance and Workplace Benefits Employee income is correlated to greater use of workplace benefits, with lower-paid workers using fewer because the cost is prohibitive, according to new research. Overall, 80% of employees participate in an HSA in 2023, compared to 79% last year and 78% in 2021, according to the study. HSA participation by salary showed discrepancies based on income. Read More |
| How Would a Health Freedom Account Change the Market? Rep. Chip Roy (R-TX) introduced legislation that would replace Health Savings Accounts with Health Freedom Accounts, allowing tens of millions of additional Americans to pay their qualified out-of-pocket medical expenses tax-free, and shift the tax benefit from employers to all Americans. Its provisions, and the potential implication, are worth reviewing. Read More |
| HSAs & Retirement |
| How to Use Your HSA as a Retirement Plan If you’re looking to maximize your retirement savings, using your Health Savings Account could be a wise choice. Not only can HSAs help pay for current medical expenses, but they can also be utilized as a supplementary retirement plan, similar to traditional options like 401(k)s or IRAs. Here’s what you should know about HSAs and how they can be used to boost your retirement savings. Read More |
| 3 Reasons Healthcare Might Cost More Than Expected in Retirement During your working years, you may find that housing is your single largest monthly expense. But once retirement rolls around, your greatest monthly expense may be none other than healthcare — so much so, that it quickly becomes a burden. Here are a few reasons healthcare might end up costing you more than expected. Read More |
| Maximizing Your HSA |
| Top 9 Questions About HSAs Answered HSAs empower employees to save for future medical expenses, while reducing their tax burden. But employees — and often employers — have legitimate questions about HSAs. Addressing commonly asked questions and educating your workforce on the potential of HSAs will foster financial and healthcare security and demonstrate your commitment to their overall well-being. Read More |
| Consumer-Driven Healthcare |
| FDA Approves Over-the-Counter Narcan. Here’s What It Means The Food and Drug Administration approved selling the leading version of naloxone without a prescription, setting the overdose-reversing drug on course to become the first opioid treatment drug to be sold over the counter. It’s a move that some advocates have long sought as a way to improve access to a life-saving drug, though the exact impact will not be clear immediately. Read More |