Weekly HSA News – May 16, 2022

News from Washington
Biden Marks 1 Million US COVID Deaths with Demand for Congressional Spending
President Biden marked 1 million US deaths from COVID-19 by insisting that Congress approve billions of dollars in new spending to boost America’s pandemic response. In March, the White House asked Congress to approve $22.5 billion to pay for COVID treatments, tests, vaccines and research. That request was pared by Hill negotiators to $15.6 billion before being cut out of legislation funding the government through September 30 due to objections from Republicans.   Read More
HSA Compliance Corner
HSAs and Veterans: Thank You for Your Service, but . . .
Here’s two issues at the intersection of HSAs and veterans’ medical benefits. Unless and until Congress changes the statute to accommodate veterans who want to (1) maintain or use the benefits to which their service entitles them and (2) fund a Health Savings Account, this intersection will be problematic. But with careful timing of VA care, veterans can still fund their accounts to the statutory limit.   Read More
HSA Best Practices
HSAs and Cancer Care: How to Guide Your Employees
Treating serious conditions such as cancer can represent a significant current and future cost challenge for those stricken by this disease. However, an HSA-centric plan can be a powerful option to support employees in many different circumstances, including those faced with a serious affliction such as a cancer diagnosis. An HDHP with an HSA may actually be a better alternative for employees.   Read More
The HSA Market
Why High-Deductible Health Plans Are Least Prevalent in Hawaii
On average, the percentage of U.S. private-sector employees enrolled in high-deductible health insurance plans in 2020 was 53 percent. But Hawaii boasts the lowest percentage in the nation, with less than 18 percent of employees enrolled in HDHPs. For reference, no other state has a percentage below 34 percent. A 1974 law may be part of the reason there is a low percentage of HDHPs in Hawaii.   Read More
HSAs & Retirement
Approaching Age 65? Understand the Intersection of HSAs and Medicare!
The intersection of Medicare and Health Savings Accounts is fraught with danger. It’s important to understand how Medicare works, what you gain and lose by enrolling at age 65, and how you might benefit (and at what cost) if you delay enrollment. The difference between the best decision and another option may be at least five figures and possibly $100,000 or more over your remaining life.   Read More
Maximizing Your HSA
How HSA Contribution Limits and Eligibility Rules Are Changing in 2023
Like IRAs and 401(k) plans, the annual contribution limits for HSAs can change based on factors such as inflation. And come 2023, HSA savers will get the option to contribute more money to their accounts. It’s important to review your plan details and make sure you’re still able to participate in an HSA. Eligibility one year doesn’t automatically guarantee the same thing for the following year.   Read More
How to Supercharge an HSA With an IRA Rollover
Many clients may be unaware of a little-known HSA funding rule that allows the client to make a rollover from the client’s IRA into the HSA. Still, the rules for IRA-to-HSA rollovers are detailed and the strategy isn’t ideal for every client. So it’s important for every client to be aware of the pros and cons of the strategy before executing the rollover.   Read More
Consumer-Driven Health Care
I’m Newly Self-Employed. Should I Open a Health Savings Account?
With healthcare costing so much, and more every year, you should know about tax-smart Health Savings Accounts, especially if you’ve recently become self-employed. If you’re self-employed, opening up an HSA involves taking more responsibility for your own healthcare costs instead of relying on the government. The good news: HSAs offer some nice tax advantages, which are explained in this column.   Read More
HSA vs. FSA: How Each of These Tax-Free Options Can Help Save You Money on Health Care
Health-care expenses are among the biggest and most stress-inducing parts of a household budget. One way to help soften the financial blow is to set aside pre-tax income to pay for health care using either an HSA or FSA, which many employers offer as part of their health benefits packages. Though there are similarities between the two, they’re not the same. Here’s what they are and how you can use each of them to save money.   Read More