Subscribe to Devenir’s 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 June 2021 edition:
- High-Deductible Health Plans: Don’t Let the Name Scare You Off
- Voya Financial to acquire Benefit Strategies, LLC
- IRS Announces 2022 Health Savings Account Limits As HSA Assets Soar
- Fidelity’s 20th Annual Retiree Health Care Cost Estimate Hits New High: A Couple Retiring Today Will Need $300,000 to Cover Medical Expenses, an 88% Increase Since 2002
- Employees More Engaged With HSAs Over the Past Year
- Lively’s Second Annual Wellness and Wealth Report Shows COVID-19 Accelerating Concerns Among Americans Over Rising Healthcare Costs
High-Deductible Health Plans: Don’t Let the Name Scare You Off
Employees have become more focused on their financial health in the wake of the COVID-19 pandemic. As a result, American workers are paying closer attention to their workplace benefits. A recent consumer survey from Voya shows that nearly 6 in 10 benefit-eligible employees (56%) spent more time reviewing their benefits offered by their employer during their most recent open enrollment period. Some people are biased against high-deductible health insurance plans — just because of the name. It’s unfortunate, because for most people an HDHP can save them money over a PPO.
Voya Financial to acquire Benefit Strategies, LLC
Voya Financial announced that it has entered into an agreement to purchase Benefit Strategies, LLC, a third-party administrator of health savings and spending accounts. Benefit Strategies provides administrative services for COBRA, direct billing, FSAs, HSAs, HRAs and other services to more than 3,400 employers and nearly 370,000 participant accounts throughout the U.S. Terms of the transaction were not disclosed.
IRS Announces 2022 Health Savings Account Limits As HSA Assets Soar
The Internal Revenue Service has announced new, higher contribution limits for health savings accounts for 2022. Are you maxing out these benefits? IRS Revenue Procedure 2021-25 has the official numbers for 2022: You can contribute $3,650 for individual coverage, up from $3,600 for 2021, or $7,300 for family coverage, up from $7,200 for 2021 into an HSA. If you’re 55-plus, you can sock away an additional $1,000 a year. That catch-up amount isn’t subject to inflation adjustments.
Fidelity’s 20th Annual Retiree Health Care Cost Estimate Hits New High: A Couple Retiring Today Will Need $300,000 to Cover Medical Expenses, an 88% Increase Since 2002
Fidelity Investments announced its 20th annual Retiree Health Care Cost Estimate. According to Fidelity, a 65-year old, opposite-gender couple retiring this year can expect to spend $300,000 in health care and medical expenses throughout retirement. For single retirees, the 2021 estimate is $157,000 for women and $143,000 for men.
Employees More Engaged With HSAs Over the Past Year
Data based on more than 3 million participants in 401(k) plans administered by Bank of America shows the average balance in health savings accounts (HSAs) increased 17% last year, with employee contributions jumping 10% from 2019. “Both participant and sponsor contributions increased, and the number of participants [contributing to HSAs] increased as well,” says John Quinn, managing director, head of institutional retirement products and platforms at Bank of America.
Lively’s Second Annual Wellness and Wealth Report Shows COVID-19 Accelerating Concerns Among Americans Over Rising Healthcare Costs
Lively released its 2nd annual Wellness & Wealth Report giving a view into American healthcare trends for employers making benefits decisions. The study, conducted by CITE Research on behalf of Lively, paints a grim picture of the state of healthcare as 60 percent of Americans are not prepared to cover a medical emergency this year, 73 percent worry about the long-term healthcare costs, and 46 percent have skipped getting coverage.