| Read the latest news about Health Savings Accounts and consumer-driven health care. |
| News from Washington |
| Biden Signs $1 Trillion Infrastructure Bill into Law President Biden signed a $1.2 trillion bipartisan infrastructure bill into law on November 15 at a boisterous ceremony at the White House, sealing a major accomplishment of his first term after weeks of negotiations in the House culminated in a bipartisan vote. Read More |
| House Passes Giant Social-Policy and Climate Measure House Democrats passed their mammoth social spending and climate plan on November 19 in a nearly party-line vote, securing a major victory for the party and providing a boost to President Biden at a tumultuous moment for his administration. The bill now heads to the Senate where its fate is uncertain. Read More |
| Rep. Latta Introduces Stop Penalizing Working Seniors Act to Expand Access to HSAs Congressman Bob Latta (R-OH) has introduced legislation to expand access to HSAs and fix a technicality prohibiting individuals who are receiving Social Security benefits from contributing to their HSA accounts. The Stop Penalizing Working Seniors Act would remove the prohibition on contributions to an HSA if an individual is enrolled solely in Medicare Part A. Read More |
| Rep. Michelle Steel Introduces Bill to Expand Access to Telehealth Rep. Michelle Steel (R-CA) has introduced a bipartisan bill that would make the telehealth waiver for HSA-qualified plans permanent. Currently, Americans with HSAs can access telehealth services without needing to first meet their deductible, but that provision is set to end December 31. Read More |
| HSA Compliance Corner |
| Telehealth and Health Saving Account Flexibility Scheduled to End The CARES Act of 2020 amended the Internal Revenue Code to temporarily allow HSA-qualified plans to cover telehealth and other remote care services on a first dollar basis before reaching the deductible. However, this relief is ending and will not be available in plan years that begin on January 1, 2022 or later. Read More |
| How an FSA Grace Period and Rollover Impact HSA Eligibility When it comes to tax-advantaged accounts, the eligibility rules can be a source of confusion for employees. A common question is what happens to HSA eligibility if an employee already has an FSA with a grace period or rollover and wants to enroll in an HSA-qualified plan at open enrollment. Read More |
| Roll Over a Large IRA Balance to an HSA? It’s Possible, but Define Large! Yes, you’re permitted to roll over funds from an IRA to an HSA, but it’s a limited opportunity. Called a “qualified HSA funding distribution,” it can be a step in the right financial direction for account owners if used correctly. But it’s a benefit with corresponding costs and potential compliance issues. Be sure you understand the details before attempting this maneuver. Read More |
| HSA Industry News |
| UMB Healthcare Services Now Offering Benefit Spending Accounts UMB Healthcare Services announced a new suite of tax-advantaged benefit accounts that complements its current HSA solution offered to employers. In addition to HSAs, their comprehensive benefit accounts solution now includes health FSAs, HRAs and commuter benefit accounts. Read More |
| Harvard Pilgrim Health Care Has Selected Bend Financial as a Preferred HSA Provider Bend Financial announced that Harvard Pilgrim Health Care has selected Bend as a preferred HSA vendor for high-deductible health plan options offered to its employer-sponsored commercial members. The collaboration marks a significant expansion into the health plan space for Bend. Read More |
| The HSA Market |
| The Status of High Deductible Health Plans with Savings Option Large employers continue to pursue high deductible health plans with savings option, such as an HSA or HRA, according to a new report. Employer coverage through HDHPs with an HSA and/or HRA or both makes up a little less than a quarter of all employer coverage. Large employers with a minimum of 200 employees are more likely to offer HDHPs than small employers. Read More |
| Should This Survey of Pandemic Use of HSAs Prompt Concern? An HSA administrator recently released the results of its second annual survey of its members. The survey results tend to reinforce what many of us in the industry intuitively think about HSAs and their owners. A pandemic is an ideal stress test of owner activity and behavior during uncertain times, so this survey and others like it are instructive in understanding the value that HSAs deliver to their owners. Read More |
| Can States Inadvertently Kill the HSA Opportunity? Maybe. HSAs, health FSAs, and HRAs are governed by federal tax law, thereby creating a single national compliance standard. However, states have wide discretion over the design of medical plans, which can put the state on a collision course with federal tax law when it comes to HSA-qualified plans. Read More |
| HSAs & Retirement |
| Are You Taking Advantage of This Surprising Retirement Savings Tool? There’s another tax-advantaged savings tool out there in addition to an IRA or a 401(k) that isn’t specific to retirement but can double as a retirement plan nonetheless. It’s called a Health Savings Account, and if you qualify for it, it’s a great place to put your money. Not everyone is allowed to contribute to an HSA, but if you meet the requirements, it pays to contribute to one of these plans for several reasons. Read More |
| Maximizing Your HSA |
| Financial Experts Love HSAs, and So Do We. Here’s Why Your Portfolio Needs This Tax-Efficient Investment Tool If you’re not investing in an HSA, you may want to reconsider. An HSA is a tax-efficient savings tool that can help you pay for medical expenses now or in the future, but can also be used for non-medical items. HSAs offer triple tax savings and give you another way to invest your money. Here’s why you should consider investing in an HSA. Read More |
| Alternative Ways to Invest Your Health Savings Account HSAs can be incredibly valuable when it comes to saving for future healthcare expenses. However, the way this account is set up also makes the HSA a smart place to stash money for retirement. Either way, people who utilize an HSA get benefits all along. One of the biggest benefits of HSAs is the fact you can invest your funds to ensure maximum growth. Read More |
| Five Hidden Features of Health Savings Accounts Employees might know that HSAs provide employees with a triple-tax advantage. Employees can contribute to them on a pretax basis; savings grow free of taxes over time, and withdrawals can be made tax-free to cover qualified medical expenses. However, there are many hidden features in HSAs that many employees may not realize. Read More |
| Consumer-Driven Health Care |
| Saving for Medical Costs: FSA, HSA, or Both? While FSAs and HSAs can both help you cover the cost of care, the rules that govern them — including who is eligible to contribute and when your savings must be used — differ greatly. Before you elect an FSA or HSA during open enrollment with your employer, it is important to determine which account, or whether a combination of both accounts, might work best for you. Read More |
| Everything You Need to Know About Your FSA and How to Make the Most of It If you’re looking to save money on your medical expenses, you might consider opening a Flexible Spending Account. With an FSA, individuals can use pre-tax money on a number of expenses that your medical or dental insurance doesn’t cover. Since it’s an employer-sponsored plan, you can only set one up if it’s offered by the company you work for. Here’s everything you need to know about an FSA. Read More |
| FSA Eligible Expenses — What Purchases Count? Flexible Spending Accounts allow employees to set aside pre-tax dollars from their paycheck to use for eligible expenses. For employees, figuring out exactly what expenses are FSA eligible can be a bit confusing. Here is what you need to know to figure out if an expense is FSA eligible. Read More |