Weekly HSA News – April 4, 2022

News from Washington
Biden Unveils $5.8 Trillion Budget Proposal with Tax Hikes, Spending Boosts
President Biden unveiled ambitious proposals to reduce the nation’s deficit over the next decade with tax hikes targeting the wealthy, while outlining boosts for military and domestic programs as part of a $5.8 trillion plan to fund the government for fiscal 2023. The White House says that the budget would reduce the deficit by over $1 trillion over the next 10 years.   Read More
House Passes Bill to Cap the Cost of Insulin
The House passed legislation to cap the cost of insulin at $35 a month on a mostly party line vote. The measure was authored by three House Democrats facing competitive reelection races this fall. Under the bill, cost sharing for beneficiaries in private plans would be limited to the lesser of $35 or 25 percent of the health plan’s negotiated price for a 30-day prescription.   Read More
House Approves Bill Legalizing Marijuana
The House passed legislation on April 1 to legalize marijuana nationwide and eliminate the longstanding criminal penalties for anyone who distributes or possesses it. The measure now goes to the Senate, but it’s not clear a bill to broadly legalize marijuana could clear the necessary 60 votes to advance in the Senate.   Read More
HSA Compliance Corner
Can an Onsite Clinic Close One Day a Month or Year to Allow HSA Funding?
Employers have ways to make their Health Savings Account programs and onsite clinics to co-exist, such as by offering services at market rates and applying those amounts to the deductible for employees funding a Health Savings Account. This will help employers ensure that the onsite clinic isn’t disqualifying coverage without the threat of an IRS challenge.   Read More
Allowing Employees to Overpay for Health Benefits Is Risky
More than 60% of American employees are overinsuring their health. Why does that matter? Because it has cost employers and employees billions of dollars annually, and it has turned health benefits into the second largest item on a company’s profit-and-loss. Now it could lead to enforcement actions, penalties and class-action lawsuits because employers have a clear fiduciary responsibility to ensure their health plans provide a benefit to participants.   Read More
HSA Industry Best Practices
New Baby on the Way? Help Employees Use Pre-Tax Funds to Save
Many new parents need a guide to show them the tools available so they aren’t burdened while trying to welcome their newest family member into this world. Encourage employees to consider using pre-tax funds to save for their out-of-pocket expenses. This includes setting up an FSA or HSA, both of which allow employees to set aside pre-tax dollars to pay for qualifying expenses.   Read More
The HSA Market
The State of the HSA Market: Assets and Opportunities Continue to Grow
The semi-annual Devenir Health Savings Account market survey report paints a comprehensive picture of the HSA industry. By any measure, HSA growth remains strong. The sheer momentum caused by higher increases in the average age of accounts will result in higher balances in the average account, more accounts with sufficient balances to invest, and a corresponding increase in total investments.   Read More
HSAs & Retirement
Do Your Employees Know They Can Use an HSA for Retirement?
Benefits professionals may thoroughly understand the advantages of using an HSA for retirement. But are your employees aware of the perks? Research indicates that almost 60% of employees who were offered an HSA did not enroll because they did not see any advantage to doing so. So its possible that your workers might need a little help understanding how they can use an HSA for retirement.   Read More
How to Manage Health Care Costs in Retirement
We don’t often think of health care costs when planning for retirement because many people are covered through their employer while they’re working, so we don’t always see the expense. Here’s how to plan for health care costs during retirement and what you can do today to avoid a major headache down the road. For example, an HSA works similarly to a retirement account such as a 401(k), but the money can be withdrawn tax-free to pay for qualified medical expenses.   Read More
Maximizing Your HSA
HSA Balances Are Soaring. Here’s Why It Pays to Save in One
There are no doubt plenty of people with HSA eligibility who have yet to fund one of these accounts. And that’s a big mistake, seeing as how HSAs are loaded with tax benefits. If you have a chance to fund an HSA, it pays to do so. But if you’re going to go that route, aim to invest your HSA and reserve that money for retirement, when you’re likely to need it the most.   Read More
Benefits of Choosing an HSA Plan
With tax season upon us, it is vital to look at every opportunity to save on our tax bill. Perhaps one of the best instruments to help us do that is a Health Savings Account. An HSA can help you lower your taxes, pay for healthcare more easily and even save for retirement. Taking advantage of all opportunities like this can help lower your tax bill. With inflation on the rise, we need every dollar we can get.   Read More
Consumer-Driven Health Care
Are High-Deductible Plans the Best Choice?
The authors of a new study found that employers contribute approximately the same total dollar amount toward premiums for both HDHPs and traditional health plans. However, many employers also contribute additional funds for employee’s HSAs which are linked to the HDHPs. In many cases, the HSA contribution makes it so that the HDHP may be the better choice financially for many individuals.   Read More
Amazon’s Telehealth Gold Rush
With little fanfare, Amazon recently launched its most significant foray into clinical health yet: the expansion of its Amazon Care telehealth service nationwide and in-person care services to more than 20 cities this year. Meanwhile, the tech giant inked a partnership with Teladoc, one of the largest telehealth providers in the country, which will allow people to access its services through their Alexa devices.   Read More