Court Affirms HSA Balance Is Not Excluded from Bankruptcy Estate
The U.S. Bankruptcy Appellate Panel for the Eighth Circuit affirmed a lower court ruling that the funds in a debtor’s Health Savings Account (HSA) are not excluded from the bankruptcy estate and are not exempt. Although most clients will not be faced with this specific set of facts, this case is a helpful reminder that although HSAs are paired with high deductible health plans, in most cases the HSA itself is not a health plan.
As we near the 10th anniversary of the enabling legislation for health savings accounts, the industry, employers and brokers/agents all have the opportunity to move HSAs forward, beyond basic administration, with the use of insightful reporting and analytical tools. In particular, as brokers continue to strive to prove their worth to clients, reporting offers a real opportunity to serve in a consultative role that can make a positive impact on their clients’ bottom-line.
CDHPs: 5 Tips for Explaining What the Heck They Are to Staff
Whether you’re offering a CDHP as the sole plan choice or simply as one of a number of plan options, communication is critical. Without the right communication strategy, it’s easy for employees to get confused – and make the wrong decisions for themselves and their families. Here are five ways to effectively communicate the ins and outs of CDHPs with your entire workforce.
Obamacare, Health Savings Accounts and Your Bank Balance
Several of financial planner David Marotta's clients have seen premium increases of more than 60 percent for insurance policies linked to their health savings accounts (HSA) since the Affordable Care Act passed in 2010. Even Marotta's 25-year-old son, who will get his own HSA-linked policy when he turns 26, has seen the $50-a-month premium for a high-deductible policy he was considering jump to $150 on the new health-care exchanges. It's vital to understand the ramifications of these much-misunderstood savings accounts.
It’s that time of year for enrollment in health insurance at work. More employers are offering plans tied to Health Savings Accounts or HSAs. The idea is that you’ll spend your health care dollars wisely when you’re using your own money. Lesley Gagnon, who works for Mercer, picked a high deductible plan for herself three years ago. “I liked the fact that it has lower premiums. That has an obvious draw,” said Gagnon. Having that plan allowed Gagnon to open a Health Savings Account.