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Health Savings Accounts are Here to Stay

Lively · March 13, 2017 · 2 min read

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Are you worried about the future of your healthcare coverage? The talk surrounding the repeal and replacement of the Affordable Care Act (ACA or also referred to as Obamacare) has many people concerned. How does it affect your own coverage?

Health Savings Accounts Regulations

Throughout all the proposed plans, one theme remains consistent. Health Saving Accounts (HSAs) appear to be here to stay. In fact, some proposed plans look to enhance HSA regulations.

Replacement Proposals

ACA repeal and replacement plans have had no shortage of ideas. On February 16, 2017, House Republican leaders released an outline of their GOP health plan and on March 6, 2017, they introduced the American Healthcare Act. It follows other proposed plans, which representatives previously released.

  • Obamacare Replacement Act (Senator Rand Paul’s proposal) — introduced January 24, 2017

  • Patient Freedom Act (Senator Bill Cassidy’s proposal) — introduced January 23, 2017

  • A Better Way: Our Vision for a More Confident America (House Speaker Paul Ryan’s proposal) — introduced June 22, 2016

  • Empowering Patients First Act (Representative Tome Price’s proposal) — introduced May 13, 2015

For more details, Kaiser Family Foundation offers an interactive comparison of the above plans to the ACA.

Proposed Health Savings Accounts (HSAs) Changes

Each of the proposals addresses the HSA role in its replacement plan. The following are a few examples of proposed changes to Health Savings Accounts (HSAs).

  • Allow individuals enrolled in any kind of health coverage to make tax-deductible contributions to an HSA (think Medicare or VA benefits)

  • Eliminate high-deductible health plan (HDHP) enrollment requirement to make tax-free contributions to an HSA

  • Expand qualified covered expenses to include items such as over-the-counter medicine and health insurance premiums

  • Authorize new Roth HSAs in which contributions are not tax deductible, but interest and investment income are tax-free, as well as distributions for qualified medical expenses

  • Encourage HSA participation with one-time refundable tax credit of $1,000

  • Increase annual tax-free contributions limits to the annual out of pocket maximums

  • Allow spouses to make contributions to HSAs

What does this mean to you? No matter what healthcare coverage looks like in the future, HSAs are an integral component of the coverage. You can start saving today and Invest in your health®.

Lively

Lively

Lively is the modern HSA experience built for—and by—those seeking stability in the ever-shifting healthcare landscape. By harnessing modern innovation and deep industry expertise, Lively is committed to bridging today’s savings with tomorrow’s unknowns. Unlike traditional institutions hindered by bureaucracy, Lively’s commitment extends beyond initial set up to providing dedicated, ongoing support and education for every step. So each HSA can reach its maximum potential with minimal headache.

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Benefits

2023 and 2024 HSA Maximum Contribution Limits

Lively · May 16, 2023 · 3 min read

On May 16, 2023 the Internal Revenue Service announced the HSA contribution limits for 2024. For 2024 HSA-eligible account holders are allowed to contribute: $4,150 for individual coverage and $8,300 for family coverage. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.

comparing hsa versus fsa

Benefits

What is the Difference Between a Flexible Spending Account and a Health Savings Account?

Lauren Hargrave · February 9, 2024 · 12 min read

A Health Savings Account (HSA) and Healthcare Flexible Spending Account (FSA) provide up to 30% savings on out-of-pocket healthcare expenses. That’s good news. Except you can’t contribute to an HSA and Healthcare FSA at the same time. So what if your employer offers both benefits? How do you choose which account type is best for you? Let’s explore the advantages of each to help you decide which wins in HSA vs FSA.

Benefits of HSA employer matching

Health Savings Accounts

Ways Health Savings Account Matching Benefits Employers

Lauren Hargrave · October 13, 2023 · 7 min read

Employers need employees to adopt and engage with their benefits and one way to encourage employees to adopt and contribute to (i.e. engage with) an HSA, is for employers to match employees’ contributions.

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.

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