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A summary of the articles included in the April 2025 edition:

  • How to Help Workers of All Ages Use—and Gain Value—from HSA Accounts
  • ABA HSA Council Lists Policy Barriers to Expanding Use of Health Savings Accounts
  • Potential Long-Term Benefits of Investing Your HSA
  • HSA Providers on High Alert: Sophisticated Attacks Target Billions in Savings
  • Challenged by Reimbursement Deadlines? HSA Owners Never Feel Pressure to File.
  • Health-E Commerce Announces Zack Peckham as CEO


How to Help Workers of All Ages Use—and Gain Value—from HSA Accounts

Consumers went into 2025 feeling optimistic about finances. However, while they may feel better about their financial prospects, employees are looking to build confidence in their overall financial literacy, and 81% say their employers can do more to help meet this goal. Health savings accounts (HSAs) deliver significant financial perks, and as such, they play an important role in the financial wellness offerings for organizations of all sizes.

HSAs are a popular benefit, with more than 37 million active accounts. The triple tax advantages of HSAs make them an employee favorite. More specifically, HSAs help employees:

  • Reduce taxable income: When employees contribute to an HSA, they reduce their taxable income and pay less in taxes when filing day rolls around.
  • Accrue savings tax-free: Any earnings in the HSA, whether from interest or investments, are not taxed as long as the money remains in the account.
  • Withdraw funds tax-free: HSA withdrawals are never taxed as long as the money is used to pay for eligible expenses.

ABA HSA Council Lists Policy Barriers to Expanding Use of Health Savings Accounts

The American Bankers Association’s Health Savings Account Council this week outlined multiple steps the Centers for Medicare and Medicaid Services can take to allow more Americans to qualify for and use an HSA. In a letter to the acting administrator of CMS, the council summarized policy challenges within the agency’s regulatory authority that are limiting the growth of HSAs and offered solutions.

One solution would be for CMS to manage its rules around Social Security eligibility so that seniors still working who elect to take their Social Security benefits early do not also get automatically enrolled in Medicare Part A, which is a disqualifying event for making HSA contributions.

“Creating this flexibility will preserve the Social Security retirement insurance benefits of seniors who choose not to receive benefits under Medicare Part A, and it will allow millions of seniors to collect their Social Security benefits without canceling their ability to contribute to their HSAs,” the HSA Council said.

Potential Long-Term Benefits of Investing Your HSA

Health savings accounts (HSAs) are not only a tax-smart way to pay for your current health care needs, but you could also rely on your savings—and any potential growth from investing HSA dollars—in your retirement. HSAs are particularly prized for their triple tax advantages: Contributions are tax-deductible, earnings are tax-free, and withdrawals are tax-free when used for qualified medical expenses. (While HSA contributions, earnings, and qualified distributions are exempt from federal income tax, they may not, in whole or in part, be exempt from state taxes.)

That said, according to the Employee Benefit Research Institute, roughly 88% of HSA holders kept their accounts entirely in cash in 2021. We generally suggest keeping two to three years’ worth of routine medical expenses in cash, cash investments, or similar low-volatility investments within your HSA. Account holders who don’t invest their excess HSA contributions could be missing an opportunity to earn tax-free returns. Here’s how you can contribute to your HSA and get started with investing your account.

HSA Providers on High Alert: Sophisticated Attacks Target Billions in Savings

Health savings account providers are discovering that their clients’ assets are magnets for crooks — even when the HSA providers’ own data defenses are strong.

HealthEquity is seeing more cyber threats from bad actors using sophisticated technology, Scott Cutler, the company’s chief executive officer, said Tuesday, during a conference call with securities analysts.

Some of the bad actors have support from national governments, Cutler added.

Challenged by Reimbursement Deadlines? HSA Owners Never Feel Pressure to File.

Question: Is there a deadline for reimbursing qualified expenses tax-free from my Health Savings Account?

Answer: No. Unlike a Health FSA – an annual reimbursement program whose plan year ends at some point, usually three or four months after the end of the plan year – a Health Savings Account is a lifetime account. You face no deadline for reimbursing qualified expenses tax-free. You can reimburse today’s qualified expenses today, next month, next year, or decades from now.

Health-E Commerce Announces Zack Peckham as CEO

Health-E Commerce, parent brand to e-commerce sites FSA Store and HSA Store, announced the appointment of Zack Peckham as its new CEO. Peckham, who previously served as CFO for the company, succeeds Preston Farrington, who will enter retirement after serving as CEO since 2020. Peckham joined Health-E Commerce in 2017 as vice president of strategy before becoming CFO in 2022.