Weekly HSA News – March 20, 2023

News from Washington
IRS Answers FAQs n Medical Costs Paid Under HSA, FSA, and HRA Plans
The IRS has posted answers to frequently asked questions regarding whether certain costs related to nutrition, wellness, and general health are medical expenses that may be paid or reimbursed under an HSA, health FSA, or HRA. The FAQs clarify information regarding whether and under what circumstances nutritional counseling, nutritional supplements, weight-loss programs, gym memberships, and other items are “qualified medical expenses.”   Read More
New Bill Would Allow Direct-Primary Care, HSAs to Co-exist
Four US senators – two Democrats and two Republicans – recently introduced legislation to allow patients to enter into direct-primary care relationships, remain eligible to fund a Health Savings Account, and reimburse the monthly fee for this medical arrangement tax-free from an HSA. This bill represents a common-sense approach to receiving care.   Read More
HSA Compliance Corner
Contribution Limits and the One-Spouse-on-Medicare Issue
An older couple is covered on an HSA-qualified plan. One of them enrolls in one or more Parts of Medicare. How does that fact affect their HSA contributions? When determining the contribution limit, focus on the contract size. If the contract covers two or more people, an eligible family member can contribute to the statutory maximum for a family contract, even if no one else covered on the medical plan meets the eligibility requirements.   Read More
HSAs & Retirement
Love the Idea of Tax-Free Income? Here’s How to Snag More of It in Retirement
Minimizing taxes in retirement by planning ahead could make your senior years a lot less stressful. One of the best options to access tax-free income when you might need it the most is a HSA. Although the only way to enjoy tax-free withdrawals from an HSA is to use your money for healthcare spending, that’s an expense that’s likely to rise on you during retirement anyway.   Read More
This Is My Favorite Retirement Account — and It’s Technically Not Even a Retirement Account
My favorite retirement savings plan technically isn’t a retirement plan. Rather, it’s an HSA, whose purpose is to help people set aside funds for medical spending. There’s a reason I’m insistent on maxing that HSA out. HSAs offer more tax benefits than any other tax-advantaged plan you’ll find. HSAs offer the same tax benefits of my 401(k), but they also offer tax-free withdrawals on money removed for medical spending.   Read More
Maximizing Your HSA
The Savings Game: Advantages and Features of Health Savings Accounts
There are many tax advantages associated with health savings accounts. Consider them “health care IRAs” that can be used after retirement. You will also be able to accumulate significant assets to pay for qualified health care expenses in retirement with tax-free withdrawals. In ways, these accounts are superior to most retirement accounts.   Read More
Consumer-Driven Healthcare
Novo Nordisk Becomes Second Company to Announce Cuts to US Insulin Prices
Danish pharmaceutical company Novo Nordisk announced on Tuesday it would be lowering the prices of some of its insulin products in the U.S. by up to 75 percent, becoming the second company to take such action after Eli Lilly’s announcement earlier this month. Four of Novo Nordisk’s “legacy products” will see price drops ranging from 65-75 percent, the company said.   Read More
More Than One-Third of Americans Haven’t Filled a Prescription Due to Cost: Survey
More than one-third of Americans say cost has prevented them from filling a prescription, according to a recent poll. Both women and individuals with an annual family income less than $50,000 were more likely to say they’ve skipped filling prescriptions due to cost, at 43 percent and 44 percent, respectively.   Read More
Majority of Adults with Past-Due Medical Debt Owe Money to Hospitals
Nearly three-quarters of U.S. adults with past-due medical bills owe at least some of that debt to hospitals, according to a new report. Almost 61 percent of those with past-due hospital bills reported that a collection agency contacted them about debt, over 5 percent had a lawsuit filed against them by a hospital; 4 percent had their wages garnished; and 2 percent had funds seized from a bank account.   Read More