| News from Washington |
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| ABA HSA Council Lists Policy Barriers to Expanding Use of Health Savings Accounts The American Bankers Association’s HSA Council outlined multiple steps the Centers for Medicare and Medicaid Services can take to allow more Americans to qualify for and use an HSA. In a letter to the acting administrator of CMS, the council summarized policy challenges within the agency’s regulatory authority that are limiting the growth of HSAs and offered solutions. Read More |
| HSA Studies & Analysis |
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| Fifteen Years Later, the ACA Has an HSA Problem — But It’s Easily Fixable 15 years after its passage, fixing the ACA for deserving recipients should be the top priority. One simple way lawmakers could improve the quality of choices available is to fix a glitch in the ACA that precludes enrollees in most high-deductible health plans from opening HSAs. Significantly more Americans have HSAs today than when the ACA was passed. Still more might enroll if this glitch is addressed. Read More |
| HDHP Decline: Implications of Falling Enrollment for Benefits Advisors The percentage of private sector employees enrolled in HDHPs increased every year from 2013 to 2021, exceeding 50% for the first time in 2019. But that’s no longer the case. Since the COVID-19 pandemic, the trend has reversed and is now below 50%. Although it seems like HDHPs are on the decline, it’s possible they could bounce back soon. Read More |
| Compliance Corner |
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| Is It Qualified for Tax-free Reimbursement? Let’s Look at Some Items in the Gray Area. The IRS doesn’t maintain a list of HSA-qualified expenses, but items that promote general health are not qualified expenses. Sometimes, however, the same item is qualified for one taxpayer and is not qualified for another, depending on individual circumstances. Let’s look at some of the expenses that fall in or around the gray area of tax-free reimbursement. Read More |
| HSA Industry News |
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| Health-E Commerce Announces Zack Peckham as CEO Health-E Commerce, parent brand to e-commerce sites FSA Store and HSA Store, announced the appointment of Zack Peckham as its new CEO. Peckham, who previously served as CFO for the company, succeeds Preston Farrington, who will enter retirement after serving as CEO since 2020. Read More |
| HSA Providers on High Alert: Sophisticated Attacks Target Billions in Savings HSA providers are discovering that their clients’ assets are magnets for crooks — even when the HSA providers’ own data defenses are strong. Some of the bad actors have support from national governments. For an HSA services provider, data security continues to be one nagging source of anxiety. Read More |
| Best Practices |
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| How to Help Workers of All Ages Use—and Gain Value—from HSA Accounts HSAs are a popular benefit and the triple tax advantages of HSAs make them an employee favorite. With so much to gain, HR teams would be wise to encourage HSA participation, and to educate employees at all professional levels and age ranges about how an HSA can support their individual needs and lifestyle. Consider the following examples of how HSAs can appeal to all workforce demographics. Read More |
| HSA Employee Benefits: 5 Powerful Ways to Slash Healthcare Costs and Elevate HR Strategy The average family misses out on nearly $800 in annual tax savings because of misconceptions surrounding HSAs. By addressing these misunderstandings, HR teams can boost employee satisfaction, reduce costs, and foster a culture of financial wellness. Here are five powerful ways to revamp your HSA strategy and help employees take full advantage of their HSA employee benefits. Read More |
| Employees Take Action After Financial Wellness Engagement When workers have access to and utilize financial tools, they make smarter financial decisions, reduce stress and feel more supported by their employers, according to a recent survey. Those who reported experiencing extreme financial stress saw a 60% reduction after engaging. There was an overall 48% improvement in the number of employees experiencing anxiety or depression related to financial concerns. Read More |
| Market Trends |
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| Benefits Costs Are “Unsustainable,” but Some Employers Are Saving $3 Million Annually with AI and Decision Support Employees are 129% more likely to elect a high-deductible health plan (HDHP) and a Health Savings Account when decision support is available at enrollment, according to a new report from Businessolver. They are likewise three times more likely to enroll in voluntary benefits when aided by decision support. Read More |
| HSAs & Retirement |
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| Health Savings Account: How to Use Your HSA to Save for Retirement A Health Savings Account is a powerful financial tool available to many Americans, yet they remain underused and often misunderstood. Here’s what you should know about how to use an HSA to secure a successful retirement. Read More |
| Projected Savings Medicare Beneficiaries Need for Health Expenses Continued to Rise in 2024 According to the latest analysis from the Employee Benefit Research Institute, men will need to have saved $191,000, and women will need to have saved $226,000 to have a 90 percent chance of meeting their health care spending needs in retirement. Couples enrolled in a Medigap plan with average premiums, meanwhile, will need to have saved $366,000 to have a 90 percent chance of covering their medical needs in retirement. Read More |
| Maximizing Your HSA |
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| How Much Should I Contribute to My HSA? The short answer: As much as you’re able to (within IRS contribution limits). Contributing the IRS-allowed maximum to your HSA in one year may sound unimaginable. But when taking into account the premium savings of an HDHP, compared to a traditional health plan, plus tax savings gained through contributing to an HSA, it becomes more realistic. Read More |
| Challenged by Reimbursement Deadlines? HSA Owners Never Feel Pressure to File. Unlike a Health FSA, a Health Savings Account is a lifetime account. You face no deadline for reimbursing qualified expenses tax-free. You can reimburse today’s qualified expenses today, next month, next year, or decades from now. This distribution flexibility is one of the most important benefits of an HSA. Read More |
| Consumer-Driven Health Care |
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| Copay Accumulator and Maximizer Programs: Stakes Rise for Patients as Federal Rulemaking Lags This article explains why health care payers are implementing copay accumulator and maximizer programs and how these programs affect patient care and the broader health system. We also examine ongoing legislative and regulatory developments at both state and federal levels, offering insights for health care decision makers as they prepare for impending regulatory guidance. Read More |
| Dementia Prevention Starts in the Workplace Rising dementia diagnoses can be mitigated, especially if employers are involved. There are 14 modifiable risk factors for dementia, including smoking, excessive alcohol use, physical activity, obesity, diabetes, hypertension, infrequent social interaction and depression. Addressing those risk factors could prevent 45% of dementia cases. Read More |