Is a health savings account (HSA) a savings tool or a tool to pay for today’s rising healthcare costs? It depends on whom you ask. While HSAs were originally introduced to employees as a long-term investment tool that can also be used to pay for eligible medical expenses along the way, employees’ usage of the […]
Financial wellness is becoming an increasingly important component of employee benefits packages and a common topic of conversation for human resources professionals nationwide. And with good reason! Nearly three-quarters (72%) of Americans report being stressed about finances and that anxiety can negatively affect their overall health. As a result, employers are expanding financial wellness programs […]
Rising healthcare costs continue to plague employers and employees alike, so it should come as no surprise that participation in high deductible health plans (HDHP) grew by more than 60% last year. A new report reveals which areas of the United States are most impacted by rising healthcare costs and highlights the types of voluntary […]
Many employees with health savings accounts (HSAs) are failing to capitalize on the full potential of these tax-advantaged accounts, according to a recent study by Willis Towers Watson (WTW).
The number of health savings accounts (HSAs) surpassed 21 million, holding about $42.7 billion in assets, according to a research report by Devenir. The investment advisor firm noted that represents a year-over-year increase between June 30, 2016 and June 30, 2017, of 23% for HSA assets and 16% for the accounts.
Both enrollment in health savings account (HSA)-eligible health plans and the number of HSAs have grown significantly since HSAs first became available in 2004; as a result, HSAs have become a significant part of employment-based health plans, according to an issue brief from the Employee Benefit Research Institute (EBRI).
As yet another attempt to kill the Affordable Care Act (ACA) heats up in Washington, employers wondering how a new law might affect their benefit plans are advised to stay tuned. And with lawmakers facing a short timetable, at least some answers should be coming soon.
A few months ago, the Internal Revenue Service (IRS) clarified in Information Letter 2016-0082 how Medicare enrollment and health savings account (HSA) eligibility sometimes collide when an employee retires shortly after turning the age of 65. More recently, the IRS provided guidance on another overlap between Medicare and HSAs—a rehire after Medicare enrollment.
One key difference between health savings accounts (HSAs) and health flexible spending accounts (FSAs) is that in some circumstances HSAs can reimburse Medicare and other insurance premiums; health FSAs cannot. Recent guidance from the Internal Revenue Service (IRS) in Information Letter 2017-0004 confirmed this fact.
United Benefit Advisors (UBA) says that more than one-third (35.1%) of all health plans offered employees a way to help pay their out-of-pocket expenses in 2016, through either a Health Savings Account (HSA) or a Health Reimbursement Arrangement (HRA). Employers and employees reap benefits from both kinds of plans, but in different ways. Understanding key differences can help you make the right decision for your company.