Weekly HSA News – May 6, 2024

DOL’s New Fiduciary Rule Faces First Legal Challenge
The first lawsuit challenging the Department of Labor’s new fiduciary investment advice rule was filed May 2 in federal court. Plaintiffs are arguing that the new rule exceeds the Labor Department’s authority and is arbitrary and capricious, in violation of the Administrative Procedure Act. In addition, the plaintiffs are seeking a preliminary injunction asking the court to stop the new rule from taking effect during the pendency of the case.   Read More
Consumer Financial Protection Bureau Says HSA Account Holders Hurt by High Fees, Low Yields
Health Savings Accounts are often filled with “costly, complex and captive junk fee structures” as well as low interest rate yields that confuse consumers and don’t deliver savings as promised, the Consumer Financial Protection Bureau announced May 1.   Read More
HSA Trade Group Blasts Government Report on Health Savings Accounts
The HSA Council of the American Bankers Association, an organization representing banks, insurance companies, and technology companies, said a report by the Consumer Financial Protection Bureau incorrectly describes HSAs, contains information that is out-of-date or not applicable to consumers, and “fails to capture the value of millions of Americans’ nationwide experience by owning an HSA.”   Read More
Can I Open and Fund My HSA after the First Day of the Month?
You can open your HSA on any day of the month. If you’re not eligible to open and fund an HSA as of the first day of a month, then you’re not eligible during that entire month. In contrast, once you meet all eligibility requirements, you can open your account as of the day your account provider processes the paperwork.   Read More
DataPath Launches ProsperityHSA
DataPath Financial Services, Inc. has announced the launch of ProsperityHSA, a program designed to create new revenue and growth opportunities in the HSA market for banking institutions, third-party employee benefit administrators (TPAs), and insurance brokers.   Read More
Prescription for Employee Financial Wellbeing? Start with an FSA or HSA
Employers can support employees’ financial wellbeing by educating their workforce about how an FSA or HSA can work with existing solutions like a 401(k) to support their short- and long-term financial goals. According to one survey, 84% of employers say offering financial tools and education helps reduce attrition, and 81% say this helps attract higher-quality employees.   Read More
What Younger Generations Potentially Miss With HSAs and How Employers Can Help
Many companies have introduced HSAs within their benefits offerings to help workers pay for short-term healthcare expenses and also help close the longer-term retirement healthcare savings gap. Younger generations, however, might be missing opportunities to benefit from HSAs. Educating younger generations just entering the workforce on the values of an HSA is especially critical.   Read More
The Pros and Cons of Stashing Money into Health Accounts vs. 401(k) Retirement Plans
If someone making $50,000 yearly were to devote a substantial 8 percent of their pretax income — $4,000 — to some combination of 401(k) and HSA plans, which carries greater advantages? With the triple tax advantage, and the inevitability of needing money to pay for health care, HSAs look like a clear winner over 401(k) plans. Of course, it’s not that simple.   Read More
Taxes and Finance: Tax Tips to Aid in Retiring Early
Wouldn’t it be nice to check out of the workforce early and not need to worry about having enough money for retirement? While good financial planning can help you get there, leveraging the tax code as part of your retirement plan is also a good idea. Here are some tax tips, such as an HSA, that could help you reach your early retirement goal.   Read More
What Does ‘Downsizing’ Medical Care in Retirement Look Like?
Two recent articles present a sobering reminder of the cost of retirement. The gap between income and expenses must be filled either by other sources of income or a reduction in monthly expenses. For many retirees who come up short on income, the only option is to downsize retirement expectations and expenses. Here’s how an HSA can help.   Read More
Does Medicare Cover Long-Term Care Costs?
Many seniors or their family members may be counting on Medicare to help cover the cost of long-term care when the need arises. The reality is, though, that Medicare’s coverage can be limited — especially when it comes to long-term care. So, understanding exactly what is and isn’t covered is crucial for proper planning and ensuring you can afford the care you need as you age.   Read More
6 Funds to Add to Your HSA
Even if you’re young and in good health, there are still advantages to opening an HSA. Funding an HSA and treating it like a retirement savings account can allow those assets to grow as long as possible. Here are six of the best funds to add to an HSA, if offered by your plan provider.   Read More
Task Force Now Recommends Breast Cancer Screenings Start at 40
Women should start regular mammography screenings at age 40 and continue every other year until age 74, an expert advisory panel now says. Citing the increase in breast cancer among younger women, the group of doctors changed their previous guidance, which recommended biennial mammograms starting by age 50, but said the decision for women in their 40s “should be an individual one.”   Read More
Retailers Retreat from Health Care Delivery
Walmart’s decision to shutter its health clinics and virtual care services marks the most significant retrenchment yet from major retailers who sought to transform how health care is delivered. Walmart might have seemed positioned to capitalize on patients’ desire for affordable and on-demand care. But the major retailers are still struggling to make the health care delivery business work.   Read More