| Read the latest news about Health Savings Accounts and consumer-driven health care. |
| News from Washington |
| Key Senators to Watch on Democrats’ Social Spending Bill All eyes will be on the Senate following the Thanksgiving break, as Democrats in the chamber seek to pass a massive social spending and climate package that is a key component of President Biden’s economic agenda. The House passed a version of the package shortly before Thanksgiving and the Senate is expected to take up the legislation this week. Lawmakers are hoping to get a bill to Biden’s desk by the end of the year, but Senate Democrats face challenges in passing the measure. Read More |
| HSA Compliance Corner |
| Drug Discount Programs in Conflict with Federal Regulations Many prescription drug manufacturers offer financial assistance (e.g., coupons, discounts or vouchers) to patients to reduce their out-of-pocket costs, particularly for very expensive drugs. However, some states have passed laws requiring the amount of financial assistance count towards a participant’s cost-sharing, which has created conflict with federal regulations regarding HDHPs and HSA eligibility. Read More |
| Comparability? Nondiscrimination? Which Rules Apply to HSA Deposits? There are three types of HSA contributions. Two are subject to certain rules. The purpose of these rules is to ensure that the program itself or the distribution of employee enrollment or participation don’t disproportionately benefit employees with higher incomes. Employers can choose which approach they want to take. Read More |
| The HSA Market |
| HSAs Are Unappreciated and Underutilized. Advisors Can Change That. With open enrollment for workplace benefits in full swing for many clients, some financial advisors are encouraging the use of HSAs as part of an overall financial plan. HSAs aren’t as widely understood or embraced as 401(k) plans or IRAs. That’s where advisors are getting involved—offering guidance on the ins and outs of these tax-advantaged accounts and even helping clients pick the investments. Read More |
| HSAs & Retirement |
| How HSAs Can Help Your Clients Save for Retirement Money in an HSA can be carried over to subsequent years if it is not needed to cover current year expenses. This is what makes it an excellent retirement savings vehicle for your eligible clients. Fidelity pegs the cost of health care in retirement for a couple both aged 65 at $300,000, and these costs are growing. This estimate does not include the costs of any long-term care needs your client might have. Read More |
| Treat Your HSA Like an Extra Retirement Account I often get the question from readers: I’ve maxed out my 401(k) and IRA. How do I continue saving for retirement? The smart move is to think of your HSA as an extra retirement account. Just like with an IRA or 401(k), the money you place here can be invested in stocks, bonds, mutual funds, and ETFs. Read More |
| Maximizing Your HSA |
| 5 Benefits of Opening a Health Savings Account The tax advantages of an HSA are like those of a traditional IRA, a Roth IRA, or a 529 college savings plan. The account can be used like a checking account to pay for medical bills as they arise, as an investment account to grow funds for health care costs down the road, or as a combination of the two. Here are five reasons why an HSA might be the right option for you. Read More |
| Consumer-Driven Health Care |
| All Your Questions On HSAs and FSAs Answered (Including Whether Or Not You Need One!) The benefit of using FSAs and HSAs is the principle of pre-taxed contributions. For an FSA, the only barrier to entry is that FSAs need to be set up by an employer. And for all of us self-employed folks, business owners can only contribute to an FSA if they own less than 2% of the company. But, while HSAs have more hoops to jump through for enrollment, the payoff can be better than with FSAs. Because with HSAs, any unused funds in your account at the end of the year, rolls over to the next year. Read More |
| Insulin Price Caps Are on the Horizon President Biden’s economic package includes a cap on the cost of insulin for the millions of people who get their health coverage through Medicare or private plans. The measure has largely flown under the radar amid politically divisive policies, like drug price negotiations meant to curb the sky-high costs of medicine. Read More |