IRS sets HSA limits for 2019

Posted by Emily Kubis on Wed, May 16, 2018 @ 09:05

Limits slightly increased

The IRS has released the new Health Savings Accounts contribution limits and maximum out-of-pocket figures for 2019.

Next year, contribution limits for individuals rise to $3,500, from $3,450 in 2018. For families, limits rise to $7,000, from 2017’s $6,900.

Maximum out-of-pocket figures also rose—for individuals, the max out-of-pocket is $6,750, up from $6,650 in 2018, and for families, max out-of-pocket is $13,500, from $13,300 in  2018.

Bernard Health's HSA-eligible plan adoption rate is 81 percent—well over industry averages.  Here are three things to know about HSAs in 2019.

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Tags: Affordable Care Act, HSAs, health savings account, obamacare, HSA Rules, health reform, health savings accounts, heath insurance

Tips for optimizing an HSA benefits strategy

Posted by Emily Kubis on Wed, May 02, 2018 @ 08:05

Health Savings Account use continues to rise

A new study from the National Center For Health Statistics shows significant growth in the number of consumers with HSA-eligible plans and consumers with HSAs, though opportunities for increased adoption remain.

The study, which covered the first nine months of 2017, found that nearly half of privately insured consumers under the age of 65 have high-deductible, or HSA-eligible, health plans.

Eighteen percent of those enrollees also have a Health Savings Account, though a quarter of consumers with HSA-eligible plans do not yet have a Health Savings Account.

These percentages are on the rise. The percentage of people enrolled in HSA-eligible plans has increased almost 18 percent since 2010, and the percentage of people with HSAs has more than doubled since 2010.

Does your organization struggle with HSA adoption? Many do. Here are three challenges and solutions to an optimized HSA-eligible benefits strategy:

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Tags: HSAs, health savings accounts, employers, health insurance small employers, employer digest

How to help employees file taxes with an HSA

Posted by Emily Kubis on Fri, Mar 09, 2018 @ 08:03

What employees need to know

Filing taxes with a Health Savings Account can be confusing, but it doesn’t have to be. Here are tips to share with employees about how to file taxes with an HSA.

As you gather all the necessary paperwork to file your taxes, here are three forms you’ll need to have on hand:

Year End Status Filing Report
This report shows account activity for the previous calendar year, and is not an official tax document.

IRS Form 1099-SA
This report provides you with ‘distributions made,’ or where you spent HSA dollars during the tax year.

IRS Form 5498-SA
This form provides you with the contributions you made to your HSA during the tax year.

These three forms are necessary to complete the IRS Form 8899 on your taxes. Typically, these are sent to you from the HSA administrator, such as HSA Bank.

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Tags: HSA, HSA taxes, health savings accounts, HR, employers, health insurance small employers, employer digest, employee benefit adviser

Tax bill reduces HSA contribution limits

Posted by Emily Kubis on Wed, Mar 07, 2018 @ 07:03

What employees need to know

The IRS published information this week describing changes to the contribution limits for family health savings accounts due to the Tax Cuts and Jobs Act of 2017.

The new limit will not affect individual consumers with self-only coverage, but the HSA contribution limit for family coverage has been reduced to $6,850 from $6,900.

What does this mean for employers and employees?

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Tags: HSA, HSA taxes, health savings accounts, HR, employers, health insurance small employers, employer digest, employee benefit adviser

How much should I contribute to my HSA in 2018?

Posted by Emily Kubis on Mon, Jan 29, 2018 @ 07:01

What individuals should know

Wondering about the best strategy to fund your HSA this year? There isn’t a one-size-fits-all approaches to Health Savings Accounts, but here are a few things to consider.

First—what’s an HSA? Consumers with high deductible health plans are eligible to fund Health Savings Accounts. These savings accounts allow consumers to contribute funds tax-free to be used for qualified medical expenses. You never pay any taxes on funds used for medical expenses, and unused funds roll over every year. After age 65, you can continue to use the funds for medical expenses, or you can withdraw the funds for any use and pay only income taxes.

So how much should you contribute?

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Tags: HSAs, HSA Plan, health savings accounts, HSA Advice, HSA questions, HSA-based plan, HSA-eligible plans

Consumers missing HSA investment opportunity

Posted by Emily Kubis on Mon, Oct 02, 2017 @ 07:10

Most using HSA as a specialized checking account 

According to a study from the Employee Benefit Research Institute, the vast majority of Health Savings Account holders are not taking advantage of the investment potential of their accounts.

The study reported that most account holders use their HSAs as “specialized checking accounts,” using the funds to cover deductibles, coinsurance and copayments. But they aren’t taking advantage of the investment opportunity of HSAs, nor are they maximizing their contributions.

The report found that just 4 percent of account holders invested their HSA balance, and the average total contribution in 2016 was $2,922, less than one half of the allowable maximum for family coverage.

While using HSAs for healthcare expenses is valuable, maximizing contributions and investing funds can be the most effective way to benefit from the accounts.

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Tags: deductible, HSA, HSAs, health savings account, health savings, High Deductible Health Plan, health insurance deductible, Individual health insurance, high deductibles, health savings accounts, HSA Advice, individual digest

IRS sets HSA limits for 2018

Posted by Emily Kubis on Wed, May 17, 2017 @ 09:05

Limits slightly increased

The IRS has released the new Health Savings Accounts contribution limits and maximum out-of-pocket figures for 2018.

Next year, contribution limits for individuals rise to $3,450, from $3,400 in 2017. For families, limits rise to $6,900, from 2017’s $6,700.

Maximum out-of-pocket figures also rose—for individuals, the max out-of-pocket is up to $6,650 from $6,550 in 2017, and for families, max out-of-pocket is $13,300, from $13,100 in  2017.

HSAs are tax-advantaged savings accounts that can be used for eligible medical costs. Want to learn more about HSAs?

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Tags: Affordable Care Act, HSAs, health savings account, obamacare, HSA Rules, health reform, health savings accounts, heath insurance

How to reimburse yourself from your HSA

Posted by Emily Kubis on Mon, May 01, 2017 @ 10:05

What to do if you don’t have enough in your HSA to cover your bill

Have a Health Savings Account and experience a medical event? Even if you don’t have enough in your HSA to cover the bill at that time, you can reimburse yourself later.

As long as the account was opened before the healthcare experience occurred, you can reimburse yourself at any time. Here’s how it works.

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Tags: deductible, HSA, HSAs, health savings account, health savings, High Deductible Health Plan, health insurance deductible, Individual health insurance, high deductibles, health savings accounts, HSA Advice, individual digest

How to market HSA-eligible plans to employees

Posted by Emily Kubis on Mon, Apr 17, 2017 @ 09:04

Messaging matters

HSA-eligible health plans represent clear financial benefits to employers. In one case study we conducted at Bernard Health, switching to this strategy created more than $260,000 in savings over five years for our employer client.

But adoption is key to a successful HSA strategy. About half of U.S. employers offer at least one HSA-eligible plan, but only about 29 percent of employees are enrolled in one, according to Kaiser Family Foundation

Certainly, there is room for improvement. At Bernard Health, HSAs are the foundation of our brokerage, and our average adoption rate is 81 percent—well over industry standards. We’ve been helping employers maximize value in their benefits packages for ten years, and here’s what we’ve learned about improving your messaging and in turn, your adoption rates.

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Tags: health savings account, employer health benefits, health savings accounts, health insurance small employers, employer digest

How would Trump expand HSAs?

Posted by Emily Kubis on Wed, Dec 14, 2016 @ 09:12

Popular proposal could see traction in 2017

Expanding Health Savings Accounts is a popular conservative health policy likely to see traction under President Donald Trump next year.

But what does expansion mean for the tax-advantaged savings accounts? Many consumers already have HSAs, which allow consumers to contribute funds tax-free and use them for qualified medical expenses.

A number of bills and proposals have been put forth for expanding HSAs in 2016 and in prior years, but nothing has been passed yet. We’ll have to wait until Trump takes office in late January to see which expansion elements his administration might propose, but here are a few ideas:

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Tags: HSA, HSAs, health savings account, health savings accounts, Individual Plans, Donald Trump, individual digest, Paul Ryan

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