Weekly HSA News – February 26, 2024

Do State Mandates Disqualify HSA-Qualified Medical Plans?
States have primary responsibility for regulating medical coverage. Unfortunately, their decisions can disqualify enrollees on plans governed by the state from opening and funding an HSA. Federal law regulates the design of HSA-qualified plans and defines which services can be covered in full. Any services that fall outside those parameters must be covered subject to the deductible.   Read More
Spouse May Be Eligible When Worker Enrolls in Medicare
Once you enroll in any Part of Medicare, you are no longer eligible to contribute to your Health Savings Account. Medicare is disqualifying coverage because the program doesn’t offer an HSA-qualified option. If your spouse is HSA-eligible, they can fund their own account. They may even be able to deposit up to the statutory maximum annual contribution for a family contract.   Read More
What HR Should Know About Using AI for Benefits Administration
Open enrollment can be a headache for employees and HR pros alike. Can AI help fix that? Some companies are betting on it, investing in AI-driven technologies with the aim of helping employees make better decisions about their benefits packages. For example, Alight has used generative AI to help craft targeted HSA campaigns based on employees’ claims and savings needs, such as having a baby.   Read More
Some Retired Couples Might Need $413,000 for Healthcare Costs. Consider Yourself Warned.
Research from the Employee Benefit Research Institute finds that some retired couples could need as much as $413,000 in savings to cover their senior healthcare costs. Even couples enrolled in original Medicare who also have Medigap insurance with average premiums will need a whopping $351,000 in savings to have a 90% chance of covering their medical care throughout their senior years.   Read More
Underestimating Retirement Medical by a Factor of Four
Too many Americans dramatically underestimate the amount that they’ll spend for medical coverage and care in retirement. Consistently funding an HSA and retaining and investing those balances over decades buy a lot more coverage and care than income derived from taxable Social Security checks and taxable withdrawals from tax-deferred retirement accounts.   Read More