Weekly HSA News – February 20, 2023

HSA Compliance Corner
Will the Six-Month Retro Rule Affect Your Income Tax Return?
When you enroll in Medicare after age 65, your Part A coverage is effective up to six months before the date that you sign up. If you know about this, you can recalibrate your contributions so that you don’t overfund your HSA when the retroactive coverage is applied. Unfortunately, there is no way to avoid Part A retroactive coverage. The best you can do is anticipate and manage it – and know how to correct excess contributions if necessary.   Read More
HSA Best Practices
Smart Money Moves: Maximizing the Tax Value of an HSA
The 2023 tax filing season is officially underway. Expiring pandemic relief is expected to result in smaller refunds, so consumers will be looking for ways to reduce their 2022 tax burden. Enter the HSA. If your organization offers an HSA as an employee benefit, your HR team should consider educating employees about the tax advantages of this special account and how to save money by using their HSA for everyday health and wellness products and services.   Read More
Can Employers Help Diabetics Enrolled in HSA-Qualified Plans?
Employers also have several tools at their disposal to help balance out-of-pocket financial responsibility, employer and employee contributions to premium, and adherence to necessary treatment regimens for chronic conditions. Here’s how employers can help their workers with diabetes pay their out-of-pocket responsibility.   Read More
The HSA Market
Trends in Deductibles Among Affordable Care Act Marketplace Plans
Affordable Care Act marketplace deductibles became more expensive in 2023 when compared to the previous year, according to an annual analysis from Kaiser Family Foundation. Across all Affordable Care Act marketplace plans, medical deductibles tended to be higher in 2023 than in 2022. Fewer health plans had deductibles between $1 and $1,500 or $3,001 and $4,500.   Read More
HSAs & Retirement
You Won’t Believe How Much Healthcare Might End Up Costing You in Retirement
A recent report by the Employee Benefit Research Institute found that a senior couple with particularly high prescription drug costs will need to have saved $383,000 to have a 90% chance of having enough money to cover their healthcare costs in retirement. Unfortunately, many seniors enter retirement with little savings and become heavily reliant on Social Security.   Read More
3 Retirement Savings Plans to Fall in Love With
There are a number of retirement plans you can turn to for the purpose of building wealth for your senior years. Here are three that offer a world of benefits. You may not regard HSAs as a retirement plan. But they can easily function as one. Chances are, healthcare will be one of your greatest expenses during retirement. So having money set aside for that purpose is important.   Read More
Maximizing Your HSA
Health Savings Accounts Offer Multiple Tax Advantages
The rea­son you should have an HSA is three­fold. First, we all know health­care costs are big and get­ting big­ger. Sec­ond, an HSA can also act as a tax-ad­van­taged sup­ple­ment to your re­tire­ment nest egg, avail­able to cover med­ical bills in­stead of draw­ing down your other sav­ings. Fi­nally, a HSA ac­count is dif­fer­ent from a flex sav­ing, which is “use-it-or-lose-it” at year end.   Read More
Consumer-Driven Healthcare
Health Savings Account: What Is an HSA Insurance Plan?
A Health Savings Account is an individual savings account that can be used to cover qualified medical expenses. It allows you to save for future medical expenses on a tax-advantaged basis and can also be used to save for retirement. Here’s the benefits of having one, how it works, and how to choose an HSA provider.   Read More