Weekly HSA News – June 17, 2024

News from Washington
US Health Spending to Top $7.7 Trillion by 2032: CMS
The federal Centers for Medicare & Medicaid Services (CMS) expects national health spending to reach $7.7 trillion by 2032. Over the next decade, CMS projects health spending to grow by 5.6% per year on average, which is faster than the expected economic growth rate of 4.3%, reaching 19.7% of GDP from 17.6% of GDP in 2023.   Read More
Biden Administration Advances Plan to Remove Medical Debt from Credit Scores
Americans would no longer have to worry about medical debts dragging down their credit scores under federal regulations proposed June 11 by the Consumer Financial Protection Bureau. If enacted, the rules would dramatically expand protections for tens of millions of Americans burdened by medical bills they can’t afford.   Read More
Compliance Corner
Beware the Disqualifying HRA if You’re Funding an HSA
A Health Reimbursement Arrangement is an employer-funded notional reimbursement account that allows a company to reimburse qualified expenses that you and your covered dependents incur which are not reimbursed from other sources. Under HSA rules, an HRA is considered disqualifying coverage unless the HRA design itself is HSA-qualified.   Read More
Inflation Reduction Act Changes Affect Notice of Creditable Coverage Considerations
The Inflation Reduction Act has made it more likely that employer-sponsored health plans will not provide creditable coverage for Medicare Part D in 2025 and future years. The most common type of coverage to face challenges are HSA-qualified plans. Employees 65 and older that delay enrollment in Part D could face higher premiums for the rest of their life if they don’t have creditable coverage.   Read More
HSA Studies & Analysis
Health Savings Accounts: By the Numbers
Health Savings Accounts offer a unique and powerful tool to save on healthcare costs while securing unbeatable tax advantages. To provide insight on the scope of this expanding market, check out this guide that delves into key current statistics and data points highlighting the growing importance of HSAs.   Read More
Market Trends
Why Aren’t Participants Using Financial Wellness Programs?
Most financial wellness products and services have usage rates of less than 20% among plan participants, according to a new report from Cerulli Associates. Somewhat more promising is that of 401(k) participants who used a financial wellness tool or service, 41% considered it very useful; that said, another 57% are ambivalent about the experience.   Read More
Gen X More Concerned About Retirement Than Other Generations
Gen Xers are increasingly worrying about retirement, and more so than their older colleagues, finds a new survey. While 82% of Baby Boomers and 77% of Millennials are confident in their ability to financially support themselves, just 62% of Gen Xers feel the same. A leading worry is the idea that they haven’t allocated enough towards retirement, as 55% say they wish they would have saved more money for the long-term.   Read More
Best Practices
Employer Tools to Maximize Retention of HSA Balances
Companies can help employees keep more money in their HSAs to spend on future qualified expenses by offering some services and products that help employees reduce their net cost of care, thus preserving higher HSA balances without reducing care (and, in some cases, enhancing outcomes). And they may also reduce future premiums.   Read More
HSAs & Retirement
HSA vs. 401k vs. IRA: How These Retirement Accounts Stack Up
The average 65-year-old couple retiring today will need $351,000 to cover healthcare and medical costs in retirement. And even though Medicare helps pay for the healthcare needs of 63 million people, most recipients still spend thousands each year on out-of-pocket expenses. To help you prepare, here is a breakdown of three common retirement accounts: an HSA vs. a 401(k) vs. an IRA.   Read More
Consumer-Driven Health Care
How Does Inflation Affect Healthcare Services and Costs?
Inflation’s effect on medical bills has made it increasingly difficult for many people to afford necessary care or even health insurance premiums. While there’s no perfect solution to this issue, being an informed, proactive consumer can at least help navigate the challenges of healthcare inflation with some smart strategies.   Read More
Men’s Health Month: The Importance of Preventive Care for Men
While June is a time to celebrate fathers and men, it’s also a sobering occasion to confront the stark realities of men’s health statistics. For example, only three out of five men undergo an annual physical, and more than 40% of men seek medical attention only when faced with a serious health crisis. These figures underscore the critical importance of early detection and proactive health management.   Read More