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A summary of the articles included in the October 2023 edition:
- Devenir Reports HSA Industry Holds $116 Billion as it Approaches 20th Anniversary
- House Lawmakers Approve Legislation to Dramatically Expand HSA Limits
- Conduent’s BenefitWallet HSA Portfolio Moving to HealthEquity
- What’s Does It Mean to ‘Decouple’ HSAs?
- Stretch Your Financial Muscles: The Unique Flexibility of HSAs
- As Health Costs Dominate Budgets, HSAs Continue to Emerge as Retirement Saving Vehicles
Devenir Reports HSA Industry Holds $116 Billion as it Approaches 20th Anniversary
Devenir, a national leader in providing investment solutions for Health Savings Accounts (HSAs), released today the results of its 26th semi-annual health savings account survey and resulting research report. Devenir found that there is about $116 billion saved in almost 36 million HSAs at the halfway point of 2023.
The survey data was primarily collected in July of 2023 for the period ending on June 30th, 2023.
“As Health Savings Accounts near their 20th year, they have become a vital financial tool for nearly 36 million people, holding $116 billion in assets designated for healthcare expenses now and in the future, said Jon Robb, SVP of research and technology at Devenir.
House Lawmakers Approve Legislation to Dramatically Expand HSA Limits
In a move that would allow more individuals to save more for their health care expenses in retirement, the House Ways and Means Committee on Sept. 28 approved legislation to significantly expand the health savings account (HSA) contribution limits, as well as broaden the number of individuals eligible for HSAs.
More specifically, the Committee approved the Bipartisan HSA Improvement Act of 2023 (H.R. 5688), sponsored by Reps. Earl Blumenauer (D-OR) and Lloyd Smucker (R-PA), and the HSA Modernization Act of 2023 (H.R. 5687), sponsored by Rep. Beth Van Duyne (R-TX), which together are estimated to cost approximately $70 billion over 10 years, according to estimates by Congress’ Joint Committee on Taxation.
The legislation is now cleared for full consideration by the House of Representatives.
Conduent’s BenefitWallet HSA Portfolio Moving to HealthEquity
Conduent and HealthEquity announced that they have entered into a definitive agreement to transfer BenefitWallet’s Health Savings Account (HSA) portfolio to HealthEquity.
The agreement contemplates a purchase price of approximately $425 million for the transition of all BenefitWallet HSA accounts, including approximately 665,000 customer accounts and their approximately $2.7 billion of HSA assets to HealthEquity.
What’s Does It Mean to ‘Decouple’ HSAs?
What would happen if eligibility to fund a Health Savings Accounts weren’t directly connected to a specific underlying medical plan design?
Among people who seek to expand the Health Savings Account opportunity to more Americans, the concept of decoupling is a compelling and straightforward approach. But what is decoupling? Who would benefit if decoupling were accomplished? And what are the barriers?
Decoupling is a simple concept. It removes the requirement that Health Savings Account owners must be covered by an HSA-qualified plan to fund their accounts.
The range of the decoupling varies from proposal to proposal. All initiatives include anyone covered by a private medical plan that meets federal requirements under the Affordable Care Act. Other proposals are more inclusive, extending the Health Savings Account option to Americans who are enrolled in Medicare or Medicaid.
Stretch Your Financial Muscles: The Unique Flexibility of HSAs
The continued growth of high-deductible health plans (HDHPs) and health savings accounts (HSAs) offers a unique opportunity to save for retirement, prepare for long-term goals, and help support financial wellness. The Vanguard research team explores this underappreciated but extremely flexible savings opportunity by reviewing HSAs, their nearly unrivaled tax benefits, and a few potential ways to take advantage of the flexibility they offer
As Health Costs Dominate Budgets, HSAs Continue to Emerge as Retirement Saving Vehicles
The number of health savings accounts has seen significant growth in the last few years as Americans grapple with the increasing challenges of controlling health care costs.
“Health care cost is trapping almost 20% of GDP over the last several years,” says Tom McCarthy, the head of the health care digital experience team within Fidelity Investments’ health division. “Twenty cents of every single dollar in this country are going toward a medical or health care expense to a facility or to research. It’s a huge problem, both for the employer as well as the employee.”
One way to prepare for these health care cost needs while not eroding tax-deferred retirement savings? The HSA, nearing its 20-year anniversary after being signed into law at the end of 2003. Last year, HSAs exceeded $100 billion in total assets for the first time, and in early 2023, accounts experienced significant asset growth, according to research from HSA consultant Devenir Group LLC.