Latest news with #HSAs
Business Wire
18 hours ago
- Business
- Business Wire
Lively's 2025 HSA Spend Report Highlighting How Americans Are Navigating Skyrocketing Healthcare Costs
SAN FRANCISCO--(BUSINESS WIRE)-- Lively, Inc., a top-rated health and lifestyle benefits platform* known for building the modern Health Savings Account (HSA), today unveiled its latest and the 7th annual 2025 HSA Spend Report, revealing how U.S. account holders are using their HSAs to cope with record-high healthcare prices—and what it means for employers, brokers, and benefits teams. Lively's 2025 HSA Spend Report Highlighting How Americans Are Navigating Skyrocketing Healthcare Costs Share 'Amidst rising prescription costs and economic uncertainty, our account holders are proving that HSAs are more than a short‑term fix—they're building longer‑term health and wealth stability,' said Shobin Uralil, Co‑founder & COO of Lively. 'Our 2025 Spend Report highlights how informed benefits strategies—backed by an intuitive platform—can shift HSAs from healthcare wallets to wealth-building assets.' Key Report Insights Withdrawals rose 13% in 2024, from $1,162 to $1,320, closely mirroring the national average of $1,370. Hospital spending increased 5%, underscoring how HSAs are helping consumers manage rising care costs in real time. The percentage of assets retained dropped to 20%, signaling that consumers are increasingly tapping into their healthcare savings. Why it matters now: As inflation unnerves consumers and medical costs keep climbing, HSAs are proving to be more than just expense accounts—they're becoming essential financial safety nets. Lively's data demonstrates that with the right provider, employees don't just spend—they actively save, invest, and build wealth for the future. About Lively Lively is the health and lifestyle benefits provider that gets it right. Our solutions are designed to take the guesswork out of managing benefits and drive efficiency for HR teams. Our innovative platform combines robust features with unparalleled service, to make maximizing your benefits as simple as it should be. *Lively's HSA is top-rated according to Morningstar's 2024 Health Savings Account Landscape, G2, Trustpilot, and Lively's Customer Satisfaction survey.
Medscape
6 days ago
- Health
- Medscape
Could Direct Primary Care's Popularity Be on the Rise?
Recent budget reconciliation legislation allows health savings accounts (HSAs) to cover Direct Primary Care (DPC) services. Here are the pros and cons. DPC Basics Unlike the setup of a traditional medical practice, DPCs provide services by charging membership fees. Historically, if an individual chose to be a DCP patient, they would pay membership fees on their own, with membership skewing towards those with the financial means to join. DPC Upsides for Providers and Patients DCP patient loads are smaller, allowing more timely, personalized care for patients. Those factors, along with unlimited access to their provider and the coverage of routine medical needs, are big upsides for members. A DCP practice enables providers to move away from the challenges associated with traditional healthcare models. DCP and HSA The new budget reconciliation law, in accordance with IRS guidelines, recognizes DCP memberships as a medical expense that HSA funds can pay for. Will DCP Become More Popular? Individuals previously unable to afford DPC memberships may now find value in utilizing their HSA funds for a more customized healthcare experience, especially if dissatisfied with their current care. Effects on the Traditional Healthcare System Shifts toward DCPs could increase the expenses involved in traditional practice, resulting in higher financial burdens for remaining patients who do not have an HSA, and therefore do not have the option to switch. The new law may also entice physicians to leave their current situation, which would leave practices with fewer providers. Bottom line: Now that HSA funds can be used for DCP memberships, a shift away from traditional practices is possible. The impact could be negative for some and beneficial for others.
Forbes
7 days ago
- Business
- Forbes
BBB Expands HSAs Across Health Plans, Here's How To Prep Your Savings For 2026
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. The One Big Beautiful Bill Act has expanded access and flexibility to health savings accounts (HSAs) , which can help account holders prepare for medical emergencies and reduce taxable income. HSAs allow for tax-free growth towards medical expenses, and can turn into an investment account at retirement. The changes go into effect January 1, 2026, with a few exceptions. Currently, four requirements must be satisfied to be eligible for an HSA: Applicants must be enrolled in a qualified high-deductible health plan, You can't have other disqualifying health coverage, You can't be enrolled in Medicare, and You can't be claimed as a dependent on someone else's current-year tax return. Eligibility will expand starting in 2026, with enrollees in high-deductible bronze and catastrophic plans on the ACA Marketplace able to contribute to an HSA. The bill also allows individuals to maintain HSA eligibility if they have a direct primary care (DPC) membership up to $150 per month for individuals, or $300 per month for families. The upcoming changes also expand HSAs to allow telehealth services without individuals first meeting their deductible. This removes a key barrier to care and increases access to virtual visits, mental health support, prescription management, and more. The amendment applies retroactively to December 31, 2024, when the previous temporary provision expired. A health savings account is a tax-advantaged savings account for medical expenses, available to those who are covered by a high-deductible health plan. HSAs allow users to save money tax-free to pay for qualifying medical expenses, such as doctor visits, prescription medications and sometimes even dental or vision care. For 2025, individuals can contribute $4,300 to an HSA, and $8,550 for family coverage. The limits bump up to $4,400 and $8,750, respectively, in 2026. Employer contributions count toward these limits. HSAs are a smart financial tool because: Their contributions are tax-deductible: Contributions to an HSA are made with pre-tax dollars and reduce your taxable income for the year, ultimately leading to a lower tax bill. Contributions to an HSA are made with pre-tax dollars and reduce your taxable income for the year, ultimately leading to a lower tax bill. They offer tax-free growth: Money in an HSA, whether it comes from an employer or from individual contributions, grows tax-free, meaning you don't pay taxes on the interest or investment gains. Money in an HSA, whether it comes from an employer or from individual contributions, grows tax-free, meaning you don't pay taxes on the interest or investment gains. You don't pay tax on qualified withdrawals: When HSA funds are used for qualifying medical expenses, withdrawals are not taxed. This includes a broad range of medical, dental and vision expenses. HSAs also provide a slew of benefits, including: Tax advantages: The triple tax benefit (tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses) makes HSAs a powerful tool that enrollees can wield to pay medical expenses, grow their funds for retirement (including interest and capital gains if invested), and use to lower their tax bills. Extra retirement funds: Since you can invest the funds and carry them over indefinitely, an HSA can grow significantly over time. Plus, once you turn 65, you can use the money for nonmedical expenses without any penalties. This is especially beneficial for individuals planning for future healthcare and financial needs in retirement. Planning now for open enrollment, which begins November 1, is one of the best ways to take advantage of the new HSA rules taking effect in 2026. If you're shopping for health coverage on the ACA Marketplace, consider enrolling in a bronze or catastrophic plan to make the most out of the HSA benefits, including lowering your taxable income and starting another nest egg for retirement. To find the right ACA plan, visit . Use the filtering tools to compare monthly premiums, deductibles, out-of-pocket maximums and provider networks to find one that fits your needs. Be sure to look for plans labeled 'HSA-eligible' to get the most out of the new eligibility expansion. Read More: Best Affordable Health Insurance Plans of 2025
Yahoo
16-07-2025
- Business
- Yahoo
Health-E Commerce® Applauds Congress for Advancing Health Savings Accounts (HSAs) in the Budget Reconciliation Bill
Legislative changes will make tax-free HSAs accessible to more Americans, providing financial support for healthcare expenses now and in retirement DALLAS, July 16, 2025 /PRNewswire/ -- Health-E Commerce, parent brand to FSA Store® and HSA Store®, commends members of the U.S. House of Representatives and U.S. Senate for including critical HSA and dependent care assistance expansions in the "One Big Beautiful Bill Act" (HR. 1), the sweeping budget reconciliation package that was passed by both chambers of Congress and signed into law on July 4, 2025. Despite the continued growth of HSAs (which have increased by $64B in total assets from 2020-2024, according to Devenir), and the widespread recognition of their value in helping Americans save for current and future healthcare costs, there have been few substantive changes to these accounts since their inception in 2003. The provisions recently signed into law reflect a significant step forward in empowering more Americans to take control of their health and finances through increased access to tax-free HSAs. "Congress deserves praise for including the HSA provisions in the budget reconciliation bill. Not only is this an essential step toward empowering Americans to take greater control of their healthcare, but it reflects a smart, forward-thinking commitment to affordability, flexibility, and personal choice, at a time when individuals and families are feeling financial strain," said Zack Peckham, CEO of Health-E Commerce. The reforms include some long-awaited improvements to HSA accessibility, including a permanent expansion of the telehealth safe harbor for high-deductible health plans (HDHPs), which allows HDHPs to cover telehealth prior to the deductible (also known as first-dollar coverage), while still allowing plan participants to open and contribute to an HSA. This legislation also expands HSA access by making Bronze and Catastrophic plans on the Affordable Care Act marketplace HSA-qualified health plans. Additionally, those covered under a Direct Primary Care Service Arrangement will not be disqualified from opening and contributing to an HSA, and the legislation allows the use of HSA funds to pay for Direct Primary Care Service Arrangement fees (with limitations). "These common-sense provisions are a win for working Americans, and they will make HSA utilization more attainable to a broader population," said Itamar Romanini, vice president and general manager of HSA Store. "HSAs are among the most effective, consumer-driven health financing tools we have, and the decision to make them more inclusive is the right decision." This legislation also eases the financial burden on working families by raising the annual contribution limits for dependent care FSAs to $7,500 ($3,750 for those married and filing separately). This marks the first permanent increase of these limits since 1986, and it will allow families to set aside more pre-tax income to cover essential caregiving expenses such as daycare and after-school programs. These changes will help parents and caregivers balance work responsibilities with family needs. Modernizing and expanding access to these vital benefits helps support economic stability and wellbeing for millions of American households. As the leader in consumer education for HSAs and FSAs, Health-E Commerce educates employers, third-party administrators, and individual account holders on the impact that legislative changes and new eligibility rules have on these accounts. HSA users can benefit from the HSA Store's library of educational articles; searchable HSA eligibility list; HSA Tax Savings Calculator; Projected Future Value Calculator; an HSA Expense Dashboard, and ExpenseTracker™ App. About Health-E Commerce®Health-E Commerce is the parent brand to FSA Store® and HSA Store, online stores that serve the 70+ million consumers enrolled in pre-tax healthcare accounts. The company also created Caring Mill®, a popular private-label line of health products through which a portion of every purchase is donated to the Children's Health Fund. Since 2010, the Health-E Commerce brands have led the direct-to-consumer e-commerce market for exclusively pre-tax health and wellness benefits. Health-E Commerce plays an essential role in advocating for expanded eligibility for important new products and telehealth categories within the list of eligible medical expenses. View original content to download multimedia: SOURCE Health-E Commerce
Yahoo
11-07-2025
- Business
- Yahoo
What are 'Trump accounts'? Here's how to use them.
Trump's tax bill includes legislation that creates tax-advantaged investment accounts for some American children. Tax Foundation CEO and president Daniel Bunn joins Mind Your Money to outline what you need to know about the so-called Trump accounts. To watch more expert insights and analysis on the latest market action, check out more Mind Your Money here. Every newborn in America will become the owner of their very own Trump account. The latest tax legislation passed by Congress and signed into law creates new tax advantaged investment accounts for every child born from the beginning of 2025 through the end of 2028. Joining me now is Daniel Bunn, CEO and president of the Tax Foundation. Daniel, welcome um and and help explain to us what these Trump accounts are and how they're going to work. Thank you so much for having me. These new accounts are designed for children and designed to provide some savings vehicle for families that are interested in creating savings accounts for their children. Now, you mentioned the $1,000 contribution from the government. That's for eligible newborns, but other children under the age of 18 may be eligible as well. But these are tax advantaged to the extent that your capital gains rate is going to be lower than your ordinary income rate when it's time to withdraw. But relative to other things in the tax code, families are going to have to consider whether Trump accounts versus, uh, you know, the educational savings accounts or HSAs or other items might be worth putting their money towards instead of the Trump accounts. And what are the contribution limits here, Daniel? How much can people put in these accounts after they're sort of seated with that $1,000? So there's two limits. There's a contribution limit for parents of $5,000 and then there's also an employer contribution limit of $2,500. So these can be opportunities for growing savings over time, but again relative to other things in the tax code, families will have to trade off the benefits of this provision versus other items. The real benefit here, and also kind of the danger with this program, is the $1,000 contribution from the government. The question is whether this is going to be just a broader new entitlement program. And once you've sort of amassed funds in there, how can you use them and when can you use them? Yeah, so there's this is a deferred savings plan similar to retirement plans, except the age limits are very different. So individuals can access these, or children can access these at age 18. They have to withdraw all funds by age 25. And can they use them for kind of whatever purpose? Yeah, so there are some qualified expenses. You could use these for a first home purchase or for educational purposes, some health related expenses as well. But the, uh, it is relatively narrowly tailored for those specific purposes. And, you know, obviously there's a whole suite of wealth building tools that are out there. Some of them already designed for families. You've got five twenty nines, you've got IRAs. What are some of the differences, similarities, benefits, disadvantages of this compared to those? So the contributions that will be made, other than that $1,000 contribution, contributions will be made after tax. So you'll pay tax on your income and then you could make contributions to your child's account. And then upon withdrawal, those withdrawals can also be taxed at the capital gains rate. The Roth style accounts, you pay in after tax and then you're able to withdraw with no tax penalty or or you have traditional IRA accounts where you contribute before tax and then you pay tax on withdrawals. So with the Trump accounts, there's tax on both ends. You might be relatively advantaged depending on your ordinary income rate, but it's not at the same level of tax advantage that you can get in different retirement accounts. So I guess that's one of the cons then that you mentioned here that you're potentially paying tax on both ends. Are there any advantages or are there any other pros and cons to mention of these? Yeah, I think one thing to mention is that it is a, you know, a deferred savings plan. So to the extent that families are having trouble, you know, keeping things in savings accounts for the right amount of time or for a specific purpose, there is an advantage there. But honestly with all of the different types of savings programs that the federal government provides through the tax code, it would have been nice to see policymakers promote a universal savings account rather than something that is in addition to the various savings vehicles that already exist through the tax code. Daniel, thanks a lot for your perspective. And Mind Your Money will have continuing coverage of how these new tax policies affect your wallet. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
