Healthcare savings options are extremely important. The current global pandemic has expanded healthcare options, offering more flexibility to people with health savings accounts (HSAs). Insurance plans coupled with HSAs have added options including telehealth and expanded coverage of over-the-counter medicine. HSAs now cover coronavirus testing, all while keeping their well-known tax perks.

Prior to the pandemic, healthcare spending was projected to increase. According to the Centers for Medicare and Medicaid Services, healthcare spending is projected to hit $5.7 trillion by 2026, an annual increase of 5.5 l percent rise from the current $3.5 trillion in healthcare spending. Presently, there is extreme variation in estimates of healthcare costs due to remaining uncertainty. While the future is unknown, we do know that HSAs are a viable option for reducing healthcare costs.

HSAs are a great way for people to save and invest their money for healthcare and future medical costs. They are designed to give people more control over their healthcare.  Health savings account contribution limits have increased for 2022. Self-only coverage contribution limits will go up by $50 for a total of $3,650 annually and family coverage contribution limits will increase by $100 for a total of $7,300 annually.

HSA/HDHP Contribution and Out-of-Pocket Limits
(Source: IRS, Revenue Procedure 2020-32)
2021 2022
 HSA contribution limit Self-only: $3,600
Family: $7,200
Self-only: $3,650
Family: $7,300
HSA catch-up contributions
(age 55 or older)
$1,000 $1,000
 HDHP minimum deductibles Self-only: $1,400
Family: $2,800
 Self-only: $1,400
Family: $2,800
HDHP maximum out-of-pocket amounts Self-only: $7,000
Family: $14,000
Self-only: $7,050
Family: $14,100

Changes in healthcare-related rules

In addition, people with HSAs now have more flexibility in how they can use their HSA dollars as a result of changes in IRS rules and regulations‡ from 2020 and 2021. Since March 11, 2020 there have been five HSA legislative and regulatory changes.

  1. Covering Coronavirus Test Act : HSA funds can be used to pay for COVID-19 testing and treatment
  2. Families First Coronavirus Response Act: Expanding HSA regulation surrounding COVID-19 testing without imposing any cost-sharing
  3. CARES Act: Expanding HSA-eligible items to include
    1. Telehealth (for expenses incurred between March 27, 2020 and December 31, 2021
    2. Over-the-counterdrugs and menstrual care products. (effective 1/1/20 with no expiration date)

The regulations allow health plans with associated HSAs to cover telehealth and other remote care until the end of 2021 at no cost to you, even if you haven’t reached your deductible. Your HSA can also be used for over-the-counter drugs and medicine along with feminine hygiene products. The same holds true for coronavirus testing and treatment. Be sure to check with your health plan for specifics.

The current regulations allow health plans with associated HSAs to cover telehealth and other remote care until the end of 2021 at no cost to you, even if you haven’t reached your deductible. Your HSA can also be used for over-the-counter drugs and medicine along with feminine hygiene products. The same holds true for coronavirus testing and treatment. Be sure to check with your health plan for specifics.

It’s important to use your income wisely during this challenging time. While your HSA dollars can be saved and invested, you can also use your funds to weather the current climate, as more items can be purchased using your HSA dollars.¹ Generally, your HSA dollars can’t be used to pay monthly health insurance premiums – however, if you are collecting unemployment insurance or are paying for healthcare yourself if you lost your job, you can use your HSA to do so. Consult your tax advisor for additional information.

Learn more about UMB Healthcare Services, which ranks fifth in total accounts and seventh in total deposit assets among all HSA providers (Source: 2021 Devenir Mid-year HSA Market Statistics & Trends Report).


1Investments in securities through an HSA investment account are:
Not FDIC-Insured · May Lose Value · No Bank Guarantee

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