Weekly HSA News – December 12, 2022

HSA Compliance Corner
Turning 65 Mid-Year? Can You Make a Full Annual Contribution? It Depends.  
The mere act of celebrating a 65th birthday has no direct effect on your eligibility to fund a Health Savings Account. But it sets up a potential disqualifying event because enrollment in any Part of Medicare disqualifies you from opening or making additional contributions to an HSA. Here’s how to navigate these tricky waters to determine how much you can contribute to your HSA for the year you turn 65.   Read More
The HSA Market
Employers Use Patient Assistance Programs to Offset Their Own Costs  
Some employers are tapping into dollars provided through patient financial assistance programs set up by drugmakers for drugs prescribed to treat conditions such as arthritis, psoriasis, cancer, and hemophilia, which some benefit managers have complained encourage patients to stay on expensive brand-name drugs when less expensive options might be available. It’s the latest twist in a long-running dispute between the drug industry and insurers over which group is more to blame for rising costs to patients.   Read More
HSAs & Retirement
Transferring IRA Money to an HSA  
Did you know that you can make a one-time, penalty- and tax-free money transfer from your IRA to your HSA? The process has been available since 2007 and is officially known as a Qualified HSA Funding Distribution. With a rollover from a traditional IRA to an HSA, you can immediately load your HSA to pay for medical expenses tax-free. Here’s what you need to know.   Read More
Closing in on Retirement? Make These 3 Tax Moves Before 2023  
If you are getting close to retirement, there are several reasons why you should consider contributing to an HSA. Contributions to an HSA are tax-deductible, the money in an HSA grows tax-free, and the money in your HSA will not be taxed when you use it for qualified expenses. Best of all, after hitting 65, you can use the HSA money for non-medical expenses without a penalty.   Read More
Maximizing Your HSA
Understanding Health Savings Accounts and Their Advantages  
What are the tax benefits of a Health Savings Account? One of the first tax benefits is there is no tax on the money that is put into that account. In addition, the individual with the HSA will not have to pay taxes on their money while it grows in this account. How do you maximize this HSA account? One way is by investing the money from the HSA into stocks, bonds, ETFs and index funds.   Read More
How to Use an HSA to Pay Medical Bills  
If you have a Health Savings Account but not enough money to cover your medical expenses, you are not necessarily doomed to insurmountable debt — even if you owe on old medical bills. Want to know how you can start paying down old medical debt with your HSA? Read on.   Read More
HSA Owners Can Relax During Annual “Use It or Lose It”​ Spending Sprees  
One of the benefits that Health Savings Account owners enjoy is not having to think about how to spend the last $50 or $750 of their balance before the end of the plan year. Hopefully, they understand that they can preserve their balances to reimburse qualified expenses that they incur next month, next year, or decades into the future.   Read More
What Happens to Unused HSA Funds at Year’s End?  
As 2022 draws to a close, you may have unspent money in your Health Savings Account. If you’re worried about that money going to waste, relax. Here’s why you don’t need to go on a shopping spree for HSA-eligible expenses before the year ends.   Read More
3 Big HSA Mistakes to Avoid in 2023  
There are different ways you can set money aside for healthcare, but if you’re able to fund a Health Savings Account, it pays to do so. That’s because HSAs offer three distinct tax breaks. But if you’re going to participate in an HSA in 2023, it’s important to know the rules. It’s also in your best interest to avoid these three big mistakes.   Read More
Consumer-Driven Health Care
Instacart Looks to Unlock Shoppers’ Unspent FSA/HSA Savings  
Grocery aggregator, Instacart, is driving sales with consumers rushing to use FSA funds before they expire. The company announced the launch of a pop-up online shop for items eligible with FSAs and HSAs, featuring items ranging from COVID-19 home tests to over-the-counter medications to sunscreen. The company is leveraging consumers’ anxieties surrounding the often-confusing process of using unused funds in these accounts.   Read More
8 Unexpected Products You Can Buy With Your HSA  
If you’re trying to decide what kind of healthcare plan to choose for 2023, consider an HSA-qualified plan so you can contribute to an HSA. They truly have some cool benefits and uses. You won’t be taxed on the money you contribute, and your withdrawals are also tax-free if you’re using the money for qualified medical expenses. Here are eight unexpected things you can pay for tax-free with your HSA.   Read More
Paxlovid Has Been Free So Far. Next Year, Sticker Shock Awaits.  
Nearly 6 million Americans have taken the COVID-19 treatment Paxlovid for free, courtesy of the federal government. But the government plans to stop footing the bill within months, and millions of people who are at the highest risk of severe illness and are least able to afford the drug — the uninsured and seniors — may have to pay the full price.   Read More