Blog
A Reform Proposal Built around Health Savings Accounts
“Many economists believe that the [employer] exclusion is a major driver of high premiums, since the federal government taxes a $1 increase in pay but not a $1 increase in medical coverage. That differential tax treatment encourages employees and union members to receive a portion of additional compensation in the form of more benefits (expanded.. Read more
Health Savings Accounts’ Value Heightened during Pandemic
“If you don’t have a sufficient account balance to reimburse all expenses, find some funds, contribute them to your Health Savings Account (if you’re still eligible and haven’t met your contribution limit), and immediately withdraw the money. Voila – you’ve just reduced your taxable income by the amount of that contribution. You won’t receive the.. Read more
A Very Early Look at the 2020 Election and Healthcare
“If the Democrats do win control of the Senate, they will have won seats in states that aren’t breeding grounds for government activism . . . Democrats who win elections in those states won’t be as eager to increase federal control over medical care as are Democrats from states like California, New York, New Jersey,.. Read more
The Gap between HDHP Enrollees and HSA Owners
“They can match Health Savings Account contributions, but most don’t adopt this approach. If they matched the first $1,000 of employee contributions rather than giving $1,000 with no restrictions, companies would encourage employees to build their account balances of the inevitable medical, dental, vision, over-the-counter, and premium expenses that they’ll incur in the future –.. Read more
Weighing Coverage Options When You Lose Your Job
“COBRA continuation doesn’t apply to employees who work for a company with fewer than 20 employees (although some states have passed similar continuation programs to cover workers at small companies). And because COBRA provides continuation of the group plan, if the group plan is terminated (for example, the company goes out of business), there is.. Read more
Stretch Your Retirement Dollars with the Right Account
“Each couple sacrificed the same amount of immediate consumption during their working years. Each earned the same return. Each incurred the same level of medical expenses in retirement. Yet the Health Savings Account owners were able to stretch their money an additional six or eight years because of the more favorable tax treatment of their.. Read more
Managing Renewal Premiums in a World of Uncertainty
“Most companies have a matching program to encourage employees to contribute to retirement accounts, knowing that the match is an incentive for these workers to sacrifice some consumption today for an immediate return of 50% to 100% on each matched dollar of retirement contributions. The same forces can boost Health Savings Account contributions.” William G… Read more
Best Practices on New Flexibility for Health FSAs
“Some employees undoubtedly are concerned that they’ll lose money because of forces beyond their control, no matter how accurately they tried to project their expenses. If they forfeit balances because of a natural disaster, they’re less likely to participate in the future. . .” William G. (Bill) Stuart Director of Strategy and Compliance June 11,.. Read more
Time to Decouple Eligibility from HSA-qualified Coverage
“[M]ost employees face financial responsibility far greater than the statutory minimum annual deductible of $1,400 for an HSA-qualified plan, but another part of the plan design (perhaps copays for office visits and prescription drugs) disqualifies them from opening and funding a Health Savings Account. This bill, if passed, would extend the benefits of this financial.. Read more
A Health FSA May Enhance Your HSA Strategy
“You’d have to withdraw $24,000 from a taxable account or pay about two-thirds of the average Social Security payment during those 14 months that your Health Savings Account continues to fund all your medical expenses tax-free. When you’re in your 70s or 80s and living on a fixed income in a volatile financial market, an.. Read more
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