| News from Washington |
| Biden Signs Bill to Raise Debt Ceiling President Biden signed legislation to raise the debt ceiling into 2025 and avert a default, marking a significant bipartisan accomplishment amid divided government in Washington, DC. The president signed the bill just days before Treasury officials warned the department would run out of money to pay the nation’s bills, potentially triggering a recession and harming the economy. Read More |
| HSA Compliance Corner |
| What Happens if I Use My HSA for Non-Medical Expenses? HSAs offer more than just a means to pay for medical costs. They can also serve as investment or retirement accounts, as the account belongs to the employee. Once an individual reaches the age of 65, the funds in an HSA can be used for general non-medical purposes without incurring any penalties, although they are still subject to income taxes. Read More |
| HSA Best Practices |
| Beyond Open Enrollment: Improving HSA Utilization and Satisfaction Simply enrolling in an HSA won’t deliver the financial edge employers are looking for. That’s where HR and benefits professionals come in: They can help employees get more from their health benefits and their pocketbook by engaging and educating them on how to use their HSA throughout the year. Consider these five tips to improve HSA knowledge and utilization. Read More |
| The HSA Market |
| Healthcare Costs Exceed $31K for Family of Four Healthcare costs for a typical American family of four reached $31,065 this year, according to the new 2023 Milliman Medical Index. Costs for the average person, meanwhile, reached $7,221. Overall, healthcare costs increased 5.6% this year, and have increased by about 4.8% annually since 2021. Read More |
| Employers Hope to Weather Inflation Without Shifting Healthcare Costs to Workers: Survey Employers are bracing for 2024, fearing they’ll face inflation and soaring healthcare costs while still trying to recruit and retain workers in a tight labor market, a new survey shows. Only 3% will shift enough cost through plan design to shield themselves from increased costs. To make a high-deductible plan more manageable, some employers are providing larger HSA contributions to employees who earn less. Read More |
| HSAs & Retirement |
| Worried About Paying for Healthcare in Retirement? Here Are Some Key Moves to Make. The idea of paying for healthcare in retirement can be scary. After all, you may be looking at higher medical bills than ever at the exact same time your income shrinks. But if you make the right moves, you can mitigate your concerns and set yourself up to cope well with the healthcare expenses that may be coming your way. Read More |
| Health Savings Accounts: Underused Tools for Retirement The HSA is a hybrid that incorporates the best features of Roth IRA and 401(k) plans. These unique accounts provide potentially triple-tax-free retirement investing opportunities that are widely underappreciated by a large percentage of Americans. HSAs should be viewed through the wider lens of retirement investing and not as just a short-term medical savings account. Read More |
| This Key Retirement Tool Is Getting a Big Boost Next Year How much you can contribute to your health savings account — considered a go-to retirement tool by many financial planners — is getting the biggest increase ever next year. The increase will help account holders stretch their health care savings a little further and can also help boost retirement savings with the vehicle’s triple tax advantage. Read More |
| Maximizing Your HSA |
| Hot HSA Moves While an HSA offers the very useful opportunity to pay yourself back for medical expenses as soon as they happen (tax-free), if you have the liquidity to pay those expenses out-of-pocket, you could transform this handy dandy account into another retirement savings vehicle. Money in an HSA can be invested similarly to how you’d invest in an IRA, but without paying taxes. Read More |
| 3 Signs You’re Not Taking Full Advantage of Your HSA If you’re eligible for an HSA, you may find that it’s a much better plan than an FSA in which to save. HSAs are far more flexible in that you can increase or decrease your contributions as you wish and don’t have to deplete your plan balance year after year. But if you’re going to fund an HSA, it’s important to make sure you’re getting the maximum benefit out of it. Here are a few signs that you’re not actually taking full advantage of your HSA. Read More |
| Not Just for Retirement: 10 Surprising Things Your HSA Can Cover Health Savings Accounts began as a tool to help you pay for doctor bills and prescriptions but have become equally well-known as retirement accounts, thanks to their unique tax advantages. However, even that doesn’t paint a complete picture of what this account can do for you. Here are 10 lesser-known things you can do with your HSA funds. Read More |
| Consumer-Driven Health Care |
| Benefits Renewing July 1? Should You Choose an HSA or an FSA? HSAs and FSAs are similar, but different. They’re distinct, but often confused. Not all employers offer both plans, in which case benefits-eligible employees don’t need to compare the two options. But even when the company offers only one, the choice is between enrolling and not enrolling. And it’s critical to have the right information about each plan before deciding whether to enroll. Read More |
| Seasonal Allergies Are Nothing to Sneeze at: Help Employees Find Relief with FSA and HSA Funds Allergies are the sixth leading cause of chronic illness in the U.S. and a leading cause of misery and expense for anyone who has to ponder pollen counts before leaving their home. But most people aren’t aware that they could be paying for everyday allergy products with tax-free FSA and HSA dollars. Here’s how to help employees understand how to use their FSA or HSA to stay on top of symptoms. Read More |