Tag: "HSA"

HSA Update: Assets in Health Savings Accounts Exceeded $20 Billion in January

Key findings from the Devenir Year-End 2013 HSA Survey:

  • 5DC1D13711CA6C227CE02F4D63C25F16-mainSteady account and asset growth. HSA accounts rose to 10.7 million accounts, holding assets totaling $19.3 billion, a year over year increase of 25% for HSA assets and 30% for accounts for the period of December 31st, 2012 to December 31st, 2013.
  • More providers offering HSAs. In 2013 over 2,200 banks and credit unions offered health savings accounts.
  • HSA contributions continue to rise. Total contributions to HSA accounts from December 2012 to December 2013 were estimated to be $16.4 billion, with accountholders retaining about 24% of those contributions after distributions for medical expenses.
  • HSA investment dollars grow with help from strong market. HSA investment assets reached an estimated $2.3 billion in December, up 30% from the end of 2012. The average investment account holder has an $11,350 average total balance (deposit and investment account).

Hits and Misses

1-2-3-ribbonResearch suggests that in the Olympics, those who finish third are likely to be a lot happier than those who finish second.

Something I bet you didn’t know: The father of affirmative action (in the sense of racial preferences and quotas) was Richard Nixon.

There are almost 11 million Health Savings Accounts with well over $20 billion in assets.

Under EU rules Britain will add illegal drug sales and prostitution to its calculations of GDP.

HSA 10th Anniversary Event Photos

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You may scroll through the photos of the banquet organized by the NCPA to celebrate the 10th anniversary of the signing of Health Savings Accounts into law, or you may view them as a slideshow by clicking the Slideshow button in the upper right-hand corner of the screen. If you find a photo you want to download, simply mouse over the photo, and a menu will pop up on the right-hand side.

Click the Save Photo icon and download to your computer. Downloads of photos are free.

HSA Update

HSA piggy bank 300There are now about nine million HSA’s with total assets of more than $18 billion; the average account balance is about $2,000, but accounts with funds in investment options, rather than just F.D.I.C.-insured accounts, average about $10,000, according to Devenir…

Devenir recently has started compiling a list of HSA providers on a new website, www.hsasearch.com. The site lists 31 providers, along with information on fees, interest rates, minimum balance requirements and availability of investment options; it’s expected to cover about 50 accounts by the end of the year, said Eric Remjeske, Devenir’s president. (NYT)

Health Savings Accounts: Ten Years On

On a wintery Monday night in Washington about 70 people gathered at a banquet to celebrate the tenth anniversary of the signing of Health Savings Accounts into law.

HCCS-13NovDec-HSA-featureFittingly, the dinner, organized by the National Center for Policy Analysis (NCPA), was held in the O’Byrne Gallery of the DAR’s Constitution Hall where President Bush signed the law on December 8, 2003.

Represented were many of the people who conceived of the idea in the 1980s, the policy staff and legislators who enacted the first Medical Savings Accounts (MSA) law in 1996, the entrepreneurs and regulators who took the concept and created Health Reimbursement Accounts in 2002, and the companies who have turned the law into the products and services that benefit tens of millions of people today.

NCPA President John Goodman, who is often referred to as “the father of HSAs,” and myself opened the commemoration with a tribute to the late J. Patrick Rooney, Chairman of Golden Rule Insurance, who did more than anyone else to popularize the idea and shepherd it through the legislative hurdles.

A Brief History of Health Savings Accounts

Devon Herrick, a senior fellow at the National Center for Policy Analysis (NCPA), writes:

  • Idoctor_with_piggy_bankn January 1984, the NCPA published a plan to use individually-owned “medical IRAs” to solve the long-term problem of Medicare.
  • Two months later, NCPA President John Goodman and Richard Rahn, then chief economist for the U.S. Chamber of Commerce, outlined this plan in a Wall Street Journal article.
  • That same year Singapore introduced a mandatory “Medisave” program.

Goodman and Senior Fellow Gerald Musgrave wrote a seminal study documenting opportunities in the United States to select high-deductible health insurance and place the premium savings in a personal health account to pay for small medical expenses.

In 1990, the NCPA organized a taskforce of researchers from 40 think tanks, universities and research organizations, including the American Enterprise Institute, the Cato Institute and the Hoover Institution. The report advocated self-insurance for small medical bills through Medical Savings Accounts (MSAs).

Capitol Hill responded quickly. In 1992, 12 different bills designed to create Medical Savings Accounts received the bipartisan support of 150 congressional cosponsors, including both conservatives and liberals. (More)

Hits and Misses

HSA piggy bank 300Contrary to industry concerns, HSA-qualified plans are widely available, attractively priced, but may be hard to identify on ACA exchanges.

The economy performs better under Democrats, but not because of anything Democrats actually do.

A defense of narrow networks. (A weak defense in my opinion.)

Could ObamaCare Be a Boon for Health Savings Accounts?

HSABased on data available for about 85 percent of exchange plans, about 77 percent have deductibles of more than $1,250 and qualify under Internal Revenue Service rules for a health savings account. For a 27-year-old purchasing coverage, the median HSA-eligible plan costs about $238 a month and typically comes with a deductible of about $3,600. The median plan without a high deductible, however, costs almost 30 percent more ($310) for a 27-year-old, though it has a significantly lower deductible (about $600). (More)

Major Breakthrough; Timid Step Forward

This is something the Bush Administration never was willing to even consider

The Obama administration loosened rules governing health-care savings accounts known as flexible-spending arrangements, or FSAs, allowing consumers to roll over as much as $500 in unused funds each year. (WSJ)

health-savings-account-bankThis means the accounts will partially function just like Health Saving Accounts. Employers potentially will be able to put up to $500 in an account for every employee and let that integrate with an overall health plan with none of the restrictions that hamper HSAs.

This is 35 million people, in addition to the 30 or so million that already have an HSA or HRA.

But why only $500? Why not the full amount? $2,500 is the new allowable contribution.

What Large Employers Are Doing

They’re sending their employees to private exchanges, armed with HSAs and HRAs:

Employers are raising deductibles, giving workers health savings accounts that look like 401(k) plans, mimicking the health law’s online insurance marketplaces and nudging patients to compare prices and shop around for treatments. Together the moves could eventually affect far more consumers than the law’s Medicaid expansion or health exchanges aimed at the uninsured and scheduled to open Oct. 1. (Kaiser Health News)

See Walgreen and others.