New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

BlackRock Employees, Prepare for Enhanced HSA Benefits in 2025

Healthcare Provider Update: Healthcare Provider for BlackRock BlackRock, a global investment management firm, does not directly provide healthcare services. Instead, they invest in health-related companies and manage assets for clients in various sectors, including healthcare. The specific healthcare providers utilized by BlackRock for employee health benefits may vary based on their corporate policies and the selection of local networks across their operational regions. Potential Healthcare Cost Increases in 2026 The healthcare landscape is projected to face significant challenges in 2026, primarily driven by sharp increases in Affordable Care Act (ACA) premiums. Record hikes are anticipated, with some states, like New York, seeing rises of over 66%. This surge is heavily influenced by the potential expiration of enhanced federal subsidies that have kept costs manageable for many enrollees. Furthermore, escalating medical expenses combined with rising claims from hospitals and providers signal that consumers could see their out-of-pocket premiums jump by 75% or more. The combination of these factors highlights a troubling trend that could leave millions of Americans with limited options for affordable healthcare coverage. Click here to learn more

For BlackRock employees, maximizing contributions to your HSA in 2025 may be a smart way to control costs around healthcare and also grow your long-term savings for retirement, said.

With the increase in HSA contribution limits coming soon, BlackRock employees approaching retirement should take advantage of this opportunity to grow their healthcare savings now so they can take a tax-efficient approach to future medical costs, said Sullivan.

In this article, we will discuss:

1. Limits on 2025 IRS health savings account (HSA) contributions.

2. How HSAs give you a triple tax advantage and help you control costs for healthcare.

3. HSAs & retirement planning & Medicare premiums.

The IRS has announced inflation-adjusted increases to the health savings account (HSA) contribution limits for 2025. The contribution cap for those with self-only health coverage will increase from USD 4,150 in 2024 to USD 4,300 in 2025, and for families, the maximum will increase from USD 8,300 to USD 8,550.

HSAs provide a triple tax benefit - contributions are deductible, account assets grow tax-free, and withdrawals for approved medical expenses are tax-free. Such features help HSAs manage healthcare costs.

Your high-deductible health plan must offer an HSA. For the year 2025, the IRS says the plans must carry a USD 1,650 individual deductible and USD 3,300 family deductible.Even with all these benefits, a 2023 survey by the Plan Sponsor Council of America found only 19% of HSA account holders invest—most keep their savings in cash—potentially missing big growth opportunities.

The IRS is also updating the catch-up contribution limit for BlackRock employees over age 55 this year—keeping the USD 1,000 catch-up contribution for now.Understand HSAs and how they could benefit your financial strategy—especially with the rise of healthcare costs and retirement planning. Prompt financial decisions such as switching to a Roth IRA or drafting a will are life planning steps as well.

And for BlackRock employees approaching retirement age: HSA money can help pay for Medicare premiums when you turn 65. That includes Medicare Advantage plans, as well as Parts B and D premiums, although Medigap premiums are not eligible for HSA expenditure. While not all medical expenses are covered by Medicare, funding these costs through HSAs could optimize your healthcare spending in retirement. A 2022 study by Fidelity Investments estimated medical costs for a retired couple would be around USD 315,000 after taxes.

Consider your health savings account (HSA) an essential tool in your financial toolkit. Like getting a new phone, increasing HSA contribution limits for 2025 gives you more options to manage and invest in your healthcare. You can think of contributing to your HSA as downloading an app that gives you triple tax benefits—deductions on contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. This keeps your health coverage as current and efficient as new technology—making your HSA a critical component of your BlackRock retirement planning strategy.

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Sources:

1. Fidelity Investments. 'HSA Contribution Limits 2024 and 2025.' Fidelity.com , 23 Jan. 2025, https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits . Accessed 5 Mar. 2025.

2. Plan Sponsor Council of America (PSCA). 'Helping Employees Enroll in HSAs.' PSCA.org , 9 Nov. 2023, https://www.psca.org/news/psca-news/2023/11/PR_2023_HSAreprot . Accessed 5 Mar. 2025.

3. Internal Revenue Service (IRS). 'Part III Administrative, Procedural, and Miscellaneous.' IRS.gov , May 2024, https://www.irs.gov/pub/irs-drop/rp-24-25.pdf . Accessed 5 Mar. 2025.

4. Woodruff Sawyer. 'IRS Releases 2025 HSA Contribution Limits and HDHP Deductible and Out-of-Pocket Limits.' Woodruffsawyer.com , 13 May 2024, https://woodruffsawyer.com/insights/2025-hsa-limits-released . Accessed 5 Mar. 2025.

5. Plan Sponsor Council of America (PSCA). 'HSAs: A Growing Retirement Savings Strategy.' 401k Specialist , Nov. 2023, https://401kspecialistmag.com/higher-numbers-of-hsas-positioned-as-retirement-savings-strategy . Accessed 5 Mar. 2025.

What type of retirement savings plan does BlackRock offer to its employees?

BlackRock offers a 401(k) retirement savings plan to its employees.

How can employees at BlackRock enroll in the 401(k) plan?

Employees at BlackRock can enroll in the 401(k) plan through the company’s HR portal during the enrollment period.

Does BlackRock match employee contributions to the 401(k) plan?

Yes, BlackRock provides a matching contribution to employee 401(k) plan contributions, subject to certain limits.

What is the maximum contribution limit for BlackRock's 401(k) plan?

The maximum contribution limit for BlackRock's 401(k) plan follows the IRS guidelines, which can change annually.

Can employees at BlackRock take loans against their 401(k) savings?

Yes, BlackRock allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

What investment options are available in BlackRock's 401(k) plan?

BlackRock's 401(k) plan offers a variety of investment options, including mutual funds and target-date funds.

Is there a vesting schedule for employer contributions in BlackRock's 401(k) plan?

Yes, BlackRock has a vesting schedule for employer contributions, which means employees must work for a certain period to fully own those contributions.

How often can employees at BlackRock change their 401(k) contribution amounts?

Employees at BlackRock can change their 401(k) contribution amounts at any time, subject to the plan’s guidelines.

What happens to a BlackRock employee's 401(k) if they leave the company?

If a BlackRock employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account or withdraw the funds, subject to tax implications.

Does BlackRock provide educational resources for employees regarding their 401(k) plan?

Yes, BlackRock provides educational resources and tools to help employees understand and manage their 401(k) savings.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

BlackRock announced a significant restructuring plan, which includes substantial layoffs and changes to employee benefits. The company is also reviewing its pension and 401(k) plans to adjust to the current economic conditions. These changes are part of a broader strategy to streamline operations and reduce costs amid market uncertainties.