Weekly HSA News – July 25, 2022

News from Washington
Democrats’ Policy Package to Include Prescription Drug Cost Controls and Obamacare Fix
Senate Majority Leader Chuck Schumer (D-NY) said that prescription drug cost controls and an Obamacare fix are the components Democrats will seek in a fast-track domestic policy bill. Democrats are seeking to keep in place increased financial assistance for people who qualify for subsidized health insurance under ACA. The prescription drug plan would allow Medicare to negotiate lower prices.   Read More
Might We See Some HSA Opportunity in an Upcoming Lame-Duck Session?
Families are more squeezed financially than usual. Patients’ out-of-pocket responsibility is climbing. Politicians should be looking for ways to help hard-working families cope with rising costs at little cost to the Treasury. Many Americans would benefit from some simple changes in the law that would expand the pool of Americans who can open and fund an HSA.   Read More
HSA Compliance Corner
Newly Enrolled in an HSA-Qualified Plan? How Much Can You Deposit?
Did you enroll in a Health Savings Account program for the first time when your company’s medical coverage renewed July 1? Are you a new employee who chose this plan for the first time? If so, and you meet all eligibility requirements, you have decisions to make about how much to fund your HSA in 2022. The good news is that you have options.   Read More
Mercer: 2023 Transportation and Health FSA Limits Projected
Mercer projects the 2023 limits for qualified transportation benefits and health FSAS will increase substantially from 2022 levels, thanks to the dramatic increase in inflation for the year. Mercer projects that the limit for contributions to a health FSA for 2023 will rise to $3,050, and the maximum rollover amount will increase to $610.   Read More
The HSA Market
Employer-Sponsored Premiums Expected to Jump ‘Significantly’
Employer-sponsored health care premiums are expected to see a larger than usual jump next year. There’s still a lot of uncertainty around how much premiums will rise for employers compared to a typical year. Willis Towers Watson puts that estimate between 5% and 9%. “7% to 9% is definitely higher than what we’ve seen in prior years,” said Courtney Stubblefield, at WTW.   Read More
Amazon Strikes $3.5B Deal for One Medical in Long March into U.S. Healthcare
Amazon.com has agreed to buy primary care provider One Medical for $3.49 billion, expanding the e-commerce giant’s virtual healthcare and adding brick-and-mortar doctors’ offices for the first time. The online retailer first piloted virtual care visits for its own staff in Seattle in 2019 before offering services to other employers under the Amazon Care brand.   Read More
HSAs & Retirement
5 Reasons This Is the Best Type of Retirement Account
Millions of savers overlook one incredibly underrated way to add extra oomph to their efforts to build a nest egg. The Health Savings Accounts available to folks enrolled in a high-deductible health insurance plan is a great place to save for today’s medical expenses. But it might be an even better place to stash cash for your golden years. Here are some key reasons to consider using an HSA to save for retirement.   Read More
Why It’s Important to Have an HSA if You Retire Before 65
The older you get, the more likely it is you’ll have medical expenses. It’s an unfortunate but often unavoidable part of aging. It will, of course, vary by person, but the time between someone retiring early and being eligible for Medicare could bring on costly medical bills without good health insurance. That’s where a Health Savings Account can really come in handy.   Read More
7 in 10 Admit to Not Saving Enough for Retirement
New research from WTW’s 2022 Global Benefits Attitudes Survey found that seven in 10 U.S. employees recognize they are not saving enough for retirement. Additionally, those closer to retirement are now more likely than before the pandemic to say they will retire beyond the age of 70 or never retire.   Read More
Helping Employees Prepare for Current and Future Health Care Costs
Due in large part to rising deductibles, employees now have more responsibility for health care costs. The cost of health care in retirement is rapidly increasing, too. In addition to helping participants factor health care costs into their retirement savings plans, plan sponsors can also help educate them about the best ways to save for these expenses.   Read More
Your 65-Year-Old Client Is Still Working. Do They Need to Enroll in Medicare?
As your clients approach age 65, you undoubtedly get a number of questions about enrolling in Medicare. Many of these questions are about how to go about it, deadlines for enrolling and whether they should consider a Medicare Advantage plan or a supplemental plan. Once your client signs up for Medicare, they are not allowed to contribute to an HSA, nor can they receive contributions from their employer.   Read More
Maximizing Your HSA
HSA or 401(K)? How About Both?
If you were to search online for “HSA and 401(k),” some of the results might seem like there is a competition to determine which one is a better option when saving for retirement. In my mind, there is no competition. Choose the 401(k) to save for living expenses in retirement; choose the HSA to save for medical expenses in retirement. Ideally, choose both to build up monies that you will need after you retire.   Read More
Can HSAs Provide Tax-Free Reimbursement for the Same Expenses as Health FSAs?
Employees can receive tax-free reimbursements for the same types of expenses from their HSAs as their health FSAs, and they might acquire a few additional options. Like health FSAs, HSAs can provide tax-free reimbursement of out-of-pocket expenses for medical care as defined in the Internal Revenue Code. But HSAs also can reimburse certain expenses that health FSAs cannot.   Read More
Consumer-Driven Health Care
Is a High-Deductible Health Plan Worth The Cost?
If your health plan meets the IRS definition of a high-deductible choice then you are eligible to contribute to an HSA. The opportunity to contribute to an HSA is a big deal. A triple tax advantage makes HSAs an attractive investment vehicle. As with all financial choices, there are some advantages and disadvantages to consider with a HDHP.   Read More
Americans Confused By Basic Health Insurance Terms But Happy With Their Plans
Many Americans say they’re happy with their health insurance, but that doesn’t mean they understand it. A recent survey found that over three-quarters can’t identify the term “coinsurance” and nearly half incorrectly defined copayment and deductible. The survey also found fairly significant knowledge gaps about open enrollment, Health Savings Accounts and medical billing.   Read More