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A summary of the articles included in the May 2022 edition:
- Millennium Trust to Acquire PayFlex from CVS Health
- Keeping Up With Healthcare Inflation
- Medicare HSA Bill Returns
- Don’t Stop at the 401(k) Match: Why Employers Should Consider Adding HSA Contributions
- The State of the HSA Market: Assets and Opportunities Continue to Grow
Millennium Trust to Acquire PayFlex from CVS Health
Millennium Trust announced it has signed a definitive agreement to acquire PayFlex from CVS Health.
The addition of PayFlex will significantly expand Millennium Trust’s growing platform to include HSAs, HRAs, FSAs, COBRA administration, and direct-billing services. With PayFlex’s 2.4 million members and more than 2,500 clients, Millennium Trust will grow to approximately 5 million individual client accounts and $47 billion of total assets under administration.
“This acquisition extends Millennium Trust’s core business and complements our strong retirement solutions,” said Gary Anetsberger, Chief Executive Officer of Millennium Trust, “enabling us to offer a uniquely differentiated platform to our shared partners and clients that spans retirement, consumer-directed benefits, financial wellness, and institutional investment services.”
Keeping Up With Healthcare Inflation
Inflation, inflation, inflation. War, a pandemic, supply chain constraints, and other factors are coming together to produce the highest levels of inflation that the U.S. has seen since the 1980’s. At the end of March, the U.S. Bureau of Labor Statistics announced the consumer price index had increased 8.5% in the last year. People have been experiencing increasing prices across the spectrum of everyday goods and services from gas to groceries and dining out. To put recent inflation numbers into perspective, inflation averaged approximately 3.7% annually between 1960 and 2020, according to the federal reserve bank of St. Louis. The pricing pressure is also impacting people’s health care costs. According to the Retirement Healthcare Costs Data report from HealthView services, healthcare inflation has historically run between 2 and 2.5 times greater than the overall U.S. inflation. So, while people are trying to keep up with the inflation to consumer goods prices, they also need to be aware of how much more they are going to have to spend on health care.
Medicare HSA Bill Returns
Congress is considering a bill that could help some clients who are enrolled in Medicare and frustrate others: H.R. 7435, the Health Savings for Seniors Act.
The bill would let Medicare enrollees contribute to health savings accounts.
The measure would offset the cost of that long-sought change by keeping HSA holders from using tax-free withdrawals from the accounts to pay the premiums for their Medicare Part B outpatient and physician coverage, or for their Medicare Advantage coverage.
Don’t Stop at the 401(k) Match: Why Employers Should Consider Adding HSA Contributions
In an increasingly competitive job market, employers looking to attract and retain talent should consider this additional arrow in their quiver: Open up 401(k) match calculations to include a health savings account contribution and educate employees to the various benefits of doing so.
William Mon, senior principal health and benefits consultant at Mercer, shares how important it is for employers to educate their employees about HSAs and provide them with the benefits of a 401(k)/HSA match for their short-term and long-term financial planning.
The State of the HSA Market: Assets and Opportunities Continue to Grow
In my youth, adolescent boys awaited the annual Sports Illustrated swimsuit issue to brighten a winter day. Today, my fellow Health Savings Account fans welcome the semi-annual Devenir Research market survey with similar interest. Though the graphics aren’t as, shall we say, provocative, the Devenir report paints comprehensive picture of the Health Savings Account industry.