Each month Devenir highlights a selection of articles to keep you abreast of the latest trends and developments in the HSA marketplace.
A summary of the articles included in the June 2019 edition:
- IRS Announces 2020 Health Savings Account Limits
- Education Dominates HSA Concerns of Plan Sponsors
- Near Retirement and Have a Health Savings Account? Beware of Snags When Claiming Social Security
- HSA Savings for Seniors Who Want to Work Longer
- Alegeus Unveils Industry’s First Smart HSA to Bolster Healthcare Spending and Saving Decisions
- HSA Anyone? Healthcare Costs Remain Top Retirement Concern
IRS Announces 2020 Health Savings Account Limits
The Internal Revenue Service announced new, higher contribution limits for health savings accounts for 2020 today. HSAs are the best way to save courtesy of Uncle Sam, with triple tax benefits. You put money in on a tax free basis (usually through salary deferrals), it builds up tax free (you can invest it), and it comes out tax free to cover out-of-pocket healthcare expenses. It’s your account; it’s up to you to use it wisely.
Education Dominates HSA Concerns of Plan Sponsors
Attendees at the PSCA National Conference got a sneak peek at the findings of the PSCA’s Inaugural Health Savings Account Survey. According to their preview of the survey results, employee education was far and away the predominant concern of plan sponsors. Nearly two-thirds (61%) ranked it as a primary concern, and another 17% cited it as a secondary issue. Nothing else came close. “Difficulty of administration” was a distant second, and it was noted by a mere 16% as a primary concern, and 19% as a secondary one. Compliance, cited as a secondary concern by 30%, but a primary one by just 8%, also stood out.
Near Retirement and Have a Health Savings Account? Beware of Snags When Claiming Social Security
If you regularly contribute to a health savings account and plan to claim Social Security past your full retirement age, watch out. That’s because you can no longer contribute to an HSA once you’re on Medicare, no matter whether you sign up just for Part A hospital coverage (which is free) or additional parts of the program that require premiums. While this sounds straightforward enough, complications can arise for people who delay both Social Security and Medicare.
HSA Savings for Seniors Who Want to Work Longer
Frustration continues for working individuals 65 and older who are required to stop HSA contributions once enrolled in Medicare, but legislation is pending to fix that. One of the most frustrating components of Medicare interactions with HSAs involves seniors who want to keep working and keep saving in an HSA plan.
Alegeus Unveils Industry’s First Smart HSA to Bolster Healthcare Spending and Saving Decisions
Alegeus announced that the industry’s first Smart HSA that features machine learning and artificial intelligence (AI) was presented for the first time during the 2019 Alegeus Client Conference. At the event, clients, prospects, and other industry stakeholders saw a detailed demonstration of the new Alegeus innovation that delivers a more intuitive, personalized, and self-guided account experience.
HSA Anyone? Healthcare Costs Remain Top Retirement Concern
Paying for health expenses in retirement is the top expense concern among Americans, regardless of age, when compared to paying off debt and “lifestyle”. The findings, from Franklin Templeton’s annual Retirement Income Strategies and Expectations (RISE) survey also notes that while Americans are concerned about paying for health expenses, almost half (48%) don’t know how they’ll pay for their healthcare costs in retirement.