Weekly HSA News – September 11, 2023

News from Washington
Republicans Challenge Acting Secretary of Labor’s Authority Amid Rumors of New Fiduciary Rule
Senator Bill Cassidy (R-LA), the ranking member of the Senate Health, Education, Labor and Pensions Committee, introduced legislation that would require Julie Su, the acting secretary of the Department of Labor, to step down. Cassidy’s legislation comes as industry watchers anticipate the DOL will send a new fiduciary rule to the Office of Management and Budget for review this week or next. The new rule is likely to be controversial with the retirement and financial advice industries, in particular, and is therefore likely to be challenged in court.   Read More
Why Democrats and Republicans Are at Odds Over the Retirement Age
While raising the retirement age has been a frequent debate in the past, the last major social security reform was in 1983, which gradually raised the retirement age from 65 to 67 by 2022. Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute, predicts any new changes would take just as long to implement.    Read More
HSA Industry News
First Dollar Partners with Health-E Commerce to Create Frictionless Shopping Experience for FSA, HSA Users
First Dollar announced its collaboration with Health-E Commerce that will simplify the shopping experience for people enrolled in FSAs and HSAs. First Dollar is among the first platforms to integrate new, patent-pending technology solutions from the parent brand to the FSA Store and HSA Store, to create a frictionless shopping experience for Health Wallet users.   Read More
Market Trends
Employers Couldn’t Duck Higher Costs of Covering Workers: Survey
Employers continue to be squeezed by medical inflation at the same time they’re fighting to retain workers in a tight labor market. Health coverage per employee has typically risen 3% to 4% a year for the last decade. But a survey by Mercer indicates that employers saw costs rise more than 5% this year, and they expect costs to rise 5.4% next year.   Read More
More Small, Medium-Sized Employers Offer Self-Insured Health Plans
Since 2018, the percentages of small and medium-sized employers offering at least one self-insured plan both increased, whereas the percentage of large companies offering a self-insured plan has decreased, according to new research. As more employers have adopted self-insured plans, enrollment in those plans has increased as well.   Read More
HSAs & Retirement
Boost Your Retirement Standard of Living with an HSA
Most Americans don’t understand retirement benefits or tax treatment of their retirement income until they’re retired. Here are four distinct advantages that pre-retirement Americans can enjoy when they incorporate a Health Savings Account into their retirement plans.   Read More
As Health Costs Dominate Budgets, HSAs Continue to Emerge as Retirement Saving Vehicles
Health care cost is trapping almost 20% of GDP over the last several years. It’s a huge problem for employers and employees. One way to prepare for these health care cost needs while not eroding tax-deferred retirement savings? The HSA. At the end of January, contributions reached $112.5 billion, up 8% since year-end 2022, signaling the power of these savings vehicles.   Read More
Harnessing the Power of HSA Funds for a Comfortable Retirement
Retirement planning can seem like a daunting task, especially for millennials who are juggling student loans, housing costs, and other financial responsibilities. However, there’s a valuable tool that many millennials may not be fully aware of. HSAs are not just for medical expenses; they can play a crucial role in building a comfortable retirement nest egg. Here’s how HSA funds can be beneficial in retirement for U.S. millennials.   Read More
Retirement Savings: 3 Ways To Use Your HSA in Retirement
Health Savings Accounts aren’t nearly as popular as their more well-known counterparts like IRAs and 401(k) plans. All of these accounts allow for tax-deductible contributions, tax-deferred growth and, in some specific cases, tax-free distributions. So, what are the ways that you can use your HSA in retirement? Here are the three most important.   Read More
Maximizing Your HSA
Happy Surprises: 3 Ways HSAs Deliver Unexpected Benefits for Employees
HSAs are a core component of 22% of benefits plans, and they are a prime example of how employer-sponsored benefits can actually deliver happy surprises that lead to increased benefits utilization and satisfaction. Here are three ways you can use employee education and communication to create happy surprises for your employees throughout the year.   Read More
You Can Put a Lot More Money Into Your HSA Next Year
Starting in January, a significant inflation adjustment will allow you to contribute much more to an HSA. The increase is the largest ever, and it means you can save more for medical expenses with these plans. The limit increase will allow people who are contributing to the max to put even more money into their HSAs next year.   Read More
This Is the Average HSA Balance. How Do You Compare?
During the first six months of 2023, the average HSA balance was $4,397, according to a recent report by Bank of America. Whether your current HSA balance is more than $4,397, less than $4,397, or around that amount, it almost doesn’t matter. Your goal should be to contribute as much money as possible to your account this year, and every year going forward when you can.   Read More