Devenir HSA Newsletter: February, 2018

  • February 1, 2018

Subscribe to our monthly newsletter and stay up to date with the latest HSA news! 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 February 2018 edition:

  • Devenir Releases Viewpoints White Paper On Investing in an HSA vs 401(k)
  • 2018 “State of Employee Benefits” Report Displays Continued Shift To Consumer-Directed Health Care
  • How Can HSAs, FSAs and HRAs Work Together?
  • Bill Ending Government Shutdown Also Delays Cadillac Tax for 2 years
  • Growth of HSAs Opens New Market for Financial Advisers
  • Amino Seamlessly Drives Greater Healthcare Savings for Millions of Americans, with New Health Savings Accounts


Devenir Releases Viewpoints White Paper On Investing in an HSA vs 401(k)

Devenir, a thought leader in the HSA investment marketplace, has released a white paper comparing the growth of the HSA marketplace to the long-established 401(k)s.

2018 is here, and both employers and accountholders are funding HSAs for the new year. In order to help accountholders make the most of their healthcare dollars, we took an in-depth look at investing in an HSA vs 401(k). After careful analysis from many angles including tax, behavioral, and industry-level, we compiled the 3 key features that all HSA investors should know, and what they mean for a retirement portfolio.

Key Highlights from the analysis:

  • HSAs may have a leg up on tax efficiency
  • HSAs are practical for a wide range of consumers
  • Account providers must help participants make the most of their HSA

“Consumers continue to look for effective ways to navigate their healthcare savings and understand the advantages HSAs have to offer. Using 401(k)s as a baseline is a great way to tell the value story of HSAs and where they fit in the retirement picture,” said Zach Haas, author of the white paper and investment analyst at Devenir.

2018 “State of Employee Benefits” Report Displays Continued Shift To Consumer-Directed Health Care

Benefitfocus, Inc. (NASDAQ: BNFT), a leading cloud-based benefits management platform and services provider, today published its third annual “State of Employee Benefits” report, which analyzed the anonymous employee benefit election data of more than 1.3 million consumers from 540 large employers – representing a sample of the total consumers who use the BENEFITFOCUS® Platform.

The data shows a continued shift toward consumer-directed health care, with the rate of employers offering at least one high-deductible health plan (HDHP) increasing more than 20 percent since 2016. This growth primarily stems from employers offering HDHPs alongside traditional health plans, reflecting the increased commitment among employers to offer more choice to employees. With respect to enrollment, the data indicates that employees’ health plan preference and benefits needs differ by demographic criteria, making plan diversity critical.

How Can HSAs, FSAs and HRAs Work Together?

Ninety-percent of large employers will offer at least one consumer-directed health plan in 2018, and nearly 40% will offer a CDHP as the only plan option, according to the National Business Group on Health. The most common CDHP design is a high-deductible health plan paired with a health savings account. This design is offered by 80% of employers that use CDHPs.

Because of the complexity of benefit accounts such as HSAs, FSAs and HRAs, it’s a tall order for brokers to pinpoint which ones to advise employers to use, and explain the pros and cons of each. Even more complex a task: explaining to employers how they can play well together to formulate the best healthcare plan for each organization.

Bill Ending Government Shutdown Also Delays Cadillac Tax for 2 years

The bill signed last week, ending the government shutdown and funding the government for another three weeks, also included a provision delaying the excise tax on high-cost employer-sponsored health plans (the “Cadillac Tax”), until 2022.

Growth of HSAs Opens New Market for Financial Advisers

The increasing popularity of health savings accounts is creating a new avenue for financial advisers to add value, while also adding assets under management. Health savings accounts hold nearly $45 billion nationwide, having grown from less than $10 billion since the 2010 passage of the Affordable Care Act that helped make HSAs so popular.

The growth trajectory, which has assets essentially doubling every three years to a projected $64 billion by the end of 2019, has the potential to become a niche service for financial advisers. “It represents a particular opportunity for advisers focused on the defined contribution market, because if you’re managing a company’s retirement plan, the next logical step is to mirror that with health savings accounts,” said Peter Stahl, president of the consulting firm Bedrock Business Results.

Amino Seamlessly Drives Greater Healthcare Savings for Millions of Americans, with New Health Savings Accounts

Amino, a digital health company, today announced that it will be expanding its offering by adding a modern health savings account (HSA) on top of its current “find care” search and price transparency features. This solution will deliver a much needed upgrade to HSAs by pairing its tax-free savings and spending with transparency around healthcare cost and quality.

“As healthcare costs and deductibles continue to rise, consumers and employers are feeling the burden of managing more of their healthcare spending and saving. At Amino, we’ve spent the last few years helping people spend more wisely by connecting them to quality, in-network physicians and facilities and allowing them to estimate costs ahead of time. With today’s announcement, we’re pulling in one of the best, yet highly underutilized, financial tools to help people save more wisely and manage their healthcare wallets. The new offering will guide people as they make healthcare decisions, from the tap of their phone to the swipe of their debit card at the pharmacy,” said David Vivero, CEO of Amino.


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