|Read the latest news about Health Savings Accounts and consumer-driven health care.|
|News from Washington|
|House Passes $1 Trillion Infrastructure Bill, Advances Social Spending Plan|
House Democrats clinched a long-sought victory on President Biden’s domestic agenda late Friday night, passing a $1.2 trillion bipartisan infrastructure bill — while advancing an even larger social spending package — after months of stubborn infighting. The back-to-back votes came after progressives caved on a key demand they’d maintained for months.
|Spending Bill Faces Senate Scramble|
President Biden’s climate and social spending bill is facing the threat of changes in the Senate as Democrats navigate a slim majority and tricky budget rules. Senate Democrats are warning that the House-passed bill is likely to change once it reaches their chamber. The bill faces multi-pronged challenges in the Senate.
|HSA Studies & Analysis|
|HSA Holders Spending More Than Saving|
The majority of HSA holders are using their accounts to focus on yearly and expected tax-advantaged health care spending, according to a new report from Lively. And these account holders are spending the money in their HSAs nearly as fast as they contribute to them.
|HSA Compliance Corner|
|Do You Offer Employees Rebates To Lower Their Prescription Drug Costs? Just Make Sure You Don’t Count It Towards Their Minimum Annual Deductible|
On June 25, 2021, the IRS released two information letters related to HSAs and HDHPs addressing: (1) correction of excess employer contributions to an HSA, and (2) how coupons, such as prescription drug coupons, apply toward the HDHP minimum annual deductible and what benefits can be provided before that deductible is met. Here is a short summary and the key takeaways for each letter.
|Contributing to an HSA After 65? Beware of Retroactive Medicare Coverage|
Did you know that when you sign up for Social Security benefits after turning age 65 that you will be automatically enrolled in Medicare Part A and given up to 6 months of retroactive coverage? That can come as quite a shock to someone still working and contributing to their HSA. It also means they might need to recalculate their contribution limit for the year (and possibly the prior year also).
|Family Warning: Yes, a Parent’s Health FSA Can Disqualify an Adult Child|
Children under age 26 who want to fund a Health Savings Account need to know whether they’re automatically enrolled in a parent’s general Health FSA. Or a parent must understand the issue and review coverage options with the child. It’s a lot to understand. And most people don’t.
|HSA Industry News|
|HealthEquity Completes Further Acquisition|
HealthEquity announced on November 1 that it has completed the acquisition of Further. HealthEquity now has approximately 6.7 million HSAs and approximately $18 billion in HSA Assets. The Further acquisition expands HealthEquity’s commitment to independent Blue Cross Blue Shield licensees.
|HSA Best Practices|
|Best Practices Emerging Around HSA Design and Administration|
As best practices regarding HSA program administration begin to emerge, many organizations do not have a formal program, leaving employees enrolled in high-deductible health plans to set up and manage the HSA account themselves. Employers’ main concern regarding their HSA program remains participant education. We know that HSAs can be a powerful tool for additional retirement savings, but if we want people to use them as such, they need the education and support to do so.
|The HSA Market|
|Including HSAs in an Adviser’s Practice|
Managing current health costs is a key part of employees’ financial wellness and paying for health care expenses in retirement is a top concern for them, so it makes sense for advisers to include health cost planning in their financial wellness and retirement planning. Retirement plan advisers can provide value to clients by helping employees make the most of their HSAs.
|HSAs & Retirement|
|2 Big Reasons to Save for Retirement in an HSA|
When you think of retirement savings accounts, chances are good the first ones that come to mind are 401(k)s and IRAs. But there’s another type of account you also need to consider. It’s called a Health Savings Account. If you’re eligible for an HSA, there are two really big reasons why at least some of your retirement nest egg should be invested in it.
|Is It Mandatory to Go on Medicare When You Turn 65?|
Someone who is eligible to receive Social Security benefits will be automatically enrolled in Medicare Part A. To opt-out, one must contact with Social Security Administration. For those 65 and older who are continuing to work at an organization with more than twenty employees, enrollment in Part A can be delayed until retirement. But if your employer provides health insurance to less than 20 people, those over 65 are required to enroll in Medicare Part A and B.
|Maximizing Your HSA|
|This Genius Investing Move Can Help Cut Your Tax Bill Now and in Retirement|
Given the HSA’s low contribution limits, you may need to pair it with some of the other accounts (401(k) and/or IRA) to save as much for retirement as you’d like. But you shouldn’t let that stop you from keeping some of your savings here if you have access to an HSA. No other account can match it in terms of flexibility, and its many perks make it a valuable asset during your working years and in retirement.