Latest news with #KayePestaina
Yahoo
03-07-2025
- Business
- Yahoo
Health savings accounts get small tweaks in tax bill
Health savings accounts were poised to get a big boost in Trump's signature tax package. That didn't happen. While the House version of the bill included several changes to enhance the use and benefits of health savings accounts (HSAs), the version that ultimately passed made only three changes, Kaye L. Pestaina, vice president and director of KFF's program on patient and consumer protection, told Yahoo Finance. 'It expands HSAs with new things people can use their HSA dollars for,' she said. Here's a rundown of the provisions included in the legislation that will be effective Jan. 2, 2026. Read more: What is a health savings account (HSA)? Concierge medical care qualifies. A Direct Primary Care (DPC) plan, often called a concierge healthcare plan, offers personalized, top-drawer healthcare services for a membership fee paid directly to a physician or practice for access to services. 'There had been some open questions about whether a consumer getting care from a DPC entity still was able to have a qualified HSA," she said. 'This will expand HSA holders' incentive to use DPC.' Under current law, many of these arrangements are not eligible to be paid for with your HSA money. In the new bill, certain DPC fees would be HSA eligible if the fee does not exceed $150 monthly for individuals, or $300 monthly where more than one individual is covered. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy More health insurance plans can provide HSAs. Individual marketplace bronze and catastrophic plans would be treated as HSA-qualified high-deductible health plans. Under existing law, these plans offered in the individual market are not considered HDHPs, so they're ineligible to be paired with an HSA. To be HSA eligible, consumers must have an HDHP that meets specific IRS rules. Many bronze plans available on the marketplace have a high deductible, but they do not meet all of the IRS requirements (for instance, they have a different out-of-pocket maximum than the IRS requires). Now, all bronze and catastrophic plans would be treated as HSA-qualified HDHPs and allow all consumers with these plans to use their HSA to pay for out-of-pocket costs. 'This would broaden Marketplace plan choices for consumers with HSAs,' Pestaina said. Calling for care. The new legislation will allow those with an HSA to use those funds to pay for telehealth. 'These consumers would be able to access medical care (presumably any type) if provided via telehealth or remote monitoring without having to first pay the high deductible. This adds a benefit for HSA consumers that those with a high deductible plan but without an HSA do not have,' Pestaina said. An HSA offers a triple tax advantage. It's the only account that lets you put money in on a tax-free basis, lets that money build up tax-free, and lets it come out tax-free for qualified healthcare expenses. (Some states assess state taxes.) In order to put money into an HSA, you must be enrolled in a high-deductible health plan (HDHP). In those plans, you pay a lower premium per month than other types of health insurance plans, but a heftier annual deductible (the amount you pay for covered medical costs before insurance kicks in). Read more: HSA contribution limits for 2025: Here's how much you can saveFor 2025, that translates to a deductible of at least $1,650 for individual coverage and $3,300 for family coverage. You can also open an HSA as a self-employed freelancer or business owner if you have a qualified high-deductible health plan. Some employers match contributions to HSAs, similar to employer-provided retirement savings accounts. Your contributions roll over year after year and are yours to keep when you retire or change employers. There's a hefty 20% penalty on any withdrawal amount not used toward a qualified medical expense, and you'll pay income tax on the disqualified sum. For anyone 65 or older, the penalty is gone, meaning you can withdraw funds for any purpose and only pay income tax on it if it's not a qualified medical expense. Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky. Sign up for the Mind Your Money newsletter 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
Yahoo
03-07-2025
- Business
- Yahoo
Health savings accounts get small tweaks in tax bill
Health savings accounts were poised to get a big boost in Trump's signature tax package. That didn't happen. While the House version of the bill included several changes to enhance the use and benefits of health savings accounts (HSAs), the version that ultimately passed made only three changes, Kaye L. Pestaina, vice president and director of KFF's program on patient and consumer protection, told Yahoo Finance. 'It expands HSAs with new things people can use their HSA dollars for,' she said. Here's a rundown of the provisions included in the legislation that will be effective Jan. 2, 2026. Read more: What is a health savings account (HSA)? Concierge medical care qualifies. A Direct Primary Care (DPC) plan, often called a concierge healthcare plan, offers personalized, top-drawer healthcare services for a membership fee paid directly to a physician or practice for access to services. 'There had been some open questions about whether a consumer getting care from a DPC entity still was able to have a qualified HSA," she said. 'This will expand HSA holders' incentive to use DPC.' Under current law, many of these arrangements are not eligible to be paid for with your HSA money. In the new bill, certain DPC fees would be HSA eligible if the fee does not exceed $150 monthly for individuals, or $300 monthly where more than one individual is covered. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy More health insurance plans can provide HSAs. Individual marketplace bronze and catastrophic plans would be treated as HSA-qualified high-deductible health plans. Under existing law, these plans offered in the individual market are not considered HDHPs, so they're ineligible to be paired with an HSA. To be HSA eligible, consumers must have an HDHP that meets specific IRS rules. Many bronze plans available on the marketplace have a high deductible, but they do not meet all of the IRS requirements (for instance, they have a different out-of-pocket maximum than the IRS requires). Now, all bronze and catastrophic plans would be treated as HSA-qualified HDHPs and allow all consumers with these plans to use their HSA to pay for out-of-pocket costs. 'This would broaden Marketplace plan choices for consumers with HSAs,' Pestaina said. Calling for care. The new legislation will allow those with an HSA to use those funds to pay for telehealth. 'These consumers would be able to access medical care (presumably any type) if provided via telehealth or remote monitoring without having to first pay the high deductible. This adds a benefit for HSA consumers that those with a high deductible plan but without an HSA do not have,' Pestaina said. An HSA offers a triple tax advantage. It's the only account that lets you put money in on a tax-free basis, lets that money build up tax-free, and lets it come out tax-free for qualified healthcare expenses. (Some states assess state taxes.) In order to put money into an HSA, you must be enrolled in a high-deductible health plan (HDHP). In those plans, you pay a lower premium per month than other types of health insurance plans, but a heftier annual deductible (the amount you pay for covered medical costs before insurance kicks in). Read more: HSA contribution limits for 2025: Here's how much you can saveFor 2025, that translates to a deductible of at least $1,650 for individual coverage and $3,300 for family coverage. You can also open an HSA as a self-employed freelancer or business owner if you have a qualified high-deductible health plan. Some employers match contributions to HSAs, similar to employer-provided retirement savings accounts. Your contributions roll over year after year and are yours to keep when you retire or change employers. There's a hefty 20% penalty on any withdrawal amount not used toward a qualified medical expense, and you'll pay income tax on the disqualified sum. For anyone 65 or older, the penalty is gone, meaning you can withdraw funds for any purpose and only pay income tax on it if it's not a qualified medical expense. Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky. Sign up for the Mind Your Money newsletter Sign in to access your portfolio
Politico
28-05-2025
- Health
- Politico
States take the reins on insurance reform
Presented by Driving The Day STATE CRACKDOWN — Congressional lawmakers have tried and failed several times to push through a bipartisan, health-industry-backed bill that would speed up health insurers' prior authorization processes for certain prescription drugs and medical services. Congress will launch another attempt this year, but a growing number of blue and red states have taken the matter into their own hands. In 2024, at least 10 states passed laws to reform the prior authorization process, according to a report from the American Medical Association. Insurers use prior authorization to control costs. The state action continues to increase in 2025. Within the past few months, states including California, Connecticut, Hawaii, Iowa, New Jersey, North Carolina and North Dakota have either proposed or enacted reforms aimed at simplifying and streamlining prior authorization. And other states, including Illinois, Georgia, Texas, Rhode Island, Minnesota and Florida, have proposed cracking down on the use of artificial intelligence in prior authorization decisions. Why it matters: The uptick in state prior authorization reforms comes as health insurers have come under intense public and congressional scrutiny over how often they deny care, especially in the wake of the fatal shooting of UnitedHealthcare CEO Brian Thompson in December. The use of AI to deny care has also put insurers in the hot seat, with UnitedHealth Group facing a lawsuit over allegations that it used AI to wrongfully deny care to Medicare Advantage patients. The state reforms also come amid a lack of congressional action on the issue, despite widespread bipartisan and industry support for reforming the prior authorization process, which can sometimes be slow and administratively burdensome — impeding patients' access to necessary medical care. Even so: State power to regulate prior authorization is limited. While states have considerable authority over insurance companies operating within their markets, the federal government has jurisdiction over self-insured employer health plans and Medicare Advantage plans. 'State action is important, but it's not complete without federal action in some ways, because it's a federal requirement for employers, for self-insured and for Medicare Advantage plans, that state activity is not going to touch them,' said Kaye Pestaina, director of KFF's Program on Patient and Consumer Protections. Background: Last week, bipartisan lawmakers in the House and the Senate reintroduced the Improving Seniors' Timely Access to Care Act — a bill that would streamline prior authorization for older adults enrolled in Medicare Advantage. Despite widespread support from lawmakers, providers, doctors and insurers — and estimated to cost $0 by the last Congress — the repeatedly introduced bill has yet to pass. WELCOME TO WEDNESDAY PULSE. A new study found that teens living in areas with more access to cannabis retailers face significantly higher rates of mental health issues. Send your tips, scoops and feedback to khooper@ and ccirruzzo@ and follow along @Kelhoops and @ChelseaCirruzzo. At the Agencies A THREAT TO MEDICAL JOURNALS — HHS Secretary Robert F. Kennedy Jr. is escalating his war on institutions he says are influenced by pharmaceutical companies, Chelsea reports. On Tuesday, Kennedy, speaking on the 'Ultimate Human' podcast — a show hosted by a longevity expert that focuses on optimizing health — threatened to stop government scientists from publishing their work in major medical journals, including The New England Journal of Medicine, JAMA and The Lancet. He said the influential medical journals are 'corrupt' and publish studies that pharmaceutical companies fund and approve. 'Unless those journals change dramatically, we are going to stop NIH scientists from publishing in them, and we're going to create our own journals in-house,' he said. NIH is the world's largest funder of health research. Key context: Kennedy's comments come days after his Make America Healthy Again Commission released a report saying overprescribed medications could be driving a rise in chronic disease in children, suggesting the pharmaceutical industry has an outsize influence on doctors and scientists. It also comes after both JAMA and NEJM received letters from the Department of Justice probing them for partisanship. A JAMA spokesperson said the journal had nothing to add when asked about Kennedy's remarks, while NEJM and The Lancet did not respond to requests for comment. HHS also did not respond to requests for comment. Even so: Kennedy's stance conflicts with that of his NIH director, Dr. Jay Bhattacharya, who recently told a reporter with POLITICO sister publication WELT that he supports academic freedom, which 'means I can send my paper out even if my bosses disagree with me.' UPPING STATE OVERSIGHT — The Centers for Medicare and Medicaid Services is warning states against using federal dollars to pay for the health care of undocumented immigrants. In a Tuesday letter, the agency notified states it's ramping up financial oversight of state Medicaid expenditures to comply with President Donald Trump's executive order on 'Ending Taxpayer Subsidization of Open Borders.' The increased oversight includes 'focused reviews' of certain state spending reports and in-depth reviews of state financial management systems. The agency will also review eligibility rules in federal regulations and 'be proposing revisions as may be necessary.' 'Medicaid is not, and cannot be, a backdoor pathway to subsidize open borders,' said CMS Administrator Mehmet Oz in a news release. 'States have a duty to uphold the law and protect taxpayer funds. We are putting them on notice — CMS will not allow federal dollars to be diverted to cover those who are not lawfully eligible.' Key context: Undocumented immigrants are generally not eligible for Medicaid, though some states have used state-only funds to expand coverage to noncitizens. The increased oversight from CMS comes as Republicans' 'big, beautiful bill,' which passed the House, includes a provision that would penalize states that have expanded Medicaid coverage to undocumented immigrants by reducing the federal matching rate for the Medicaid expansion population for those states. Vaccines CDC'S COVID VAX CHANGE — The CDC no longer recommends that 'healthy' children and pregnant women receive the Covid-19 vaccine, a controversial change that's perplexed some public health experts, POLITICO's Sophie Gardner and David Lim report. On Tuesday, HHS Secretary Robert F. Kennedy Jr. announced the guidance change in a post on social media platform X, saying 'it's common sense and it's good science.' 'We're now one step closer to realizing President Trump's promise to make America healthy again,' Kennedy said in a video, standing beside FDA Commissioner Marty Makary and NIH Director Jay Bhattacharya. Kennedy cited 'a lack of any clinical data to support the repeat booster strategy in children.' Background: The CDC had recommended the vaccine for everyone at least 6 months old. Kennedy has long maintained that Covid vaccines aren't safe, despite the medical consensus that they are. Most Americans have stopped getting Covid vaccines. The most recent CDC data says about 1 in 8 children under 18 have received the latest shot, while fewer than 1 in 4 adults ages 18 and older have. Key context: The change bucks the CDC's precedent for updating vaccine recommendations, which typically takes place after a panel of experts votes on proposed changes. 'I'm disturbed for a couple reasons,' said Dr. Georges Benjamin, executive director of the American Public Health Association, which represents public health workers. 'I don't believe that they followed the normal process whereby you bring the advisory committees into this decision.' Other experts raised concerns about the public health implications of the decision. 'I'm perplexed by this decision,' said Mark Turrentine, an OB-GYN and professor at Baylor College of Medicine in Houston. 'A lot of pregnant people died of Covid, especially during the Delta wave. And we know Covid still hasn't gone away. And we know pregnant people are a high-risk group. And we have a lot of data that the vaccine provides strong protection for both the mother and the baby.' WHAT WE'RE READING POLITICO's Victor Goury-Laffont reports on France advancing an assisted-dying bill in a historic vote. STAT's Jason Mast reports on what one child's success story means for the CRISPR gene-editing industry.
