Each year, the IRS releases the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs). The IRS is required to publish these limits by June 1 of each year. The limits for plan years starting on or after January 1, 2023, were published on April 29.
Background
In order to contribute to an HSA (or have contributions made on their behalf) individuals must participate in an HDHP. HDHPs must have minimum deductibles and maximum out-of-pocket limits, which are set each year by the IRS. The out-of-pocket limit amount includes deductibles, copayments, coinsurance, or other amounts the plan participants pay for coverage except the employee share of the premium expense.
Employers who sponsor HDHPs will need to review their plans’ minimum deductible and maximum out-of-pocket limits to assure compliance for plan years starting on or after 2023. They will want to incorporate those new limits and any increased HSA opportunities for their employees during the upcoming open enrollment season.
New Limits
HDHP Requirements
Minimum deductible
Self-only coverage - $1,500 (up from $1,400 in 2022)
Family coverage - $$3,000 (up from $2,800 in 2022)
Maximum out-of-pocket expense
Self-only coverage - $7,500 (up from $7,050 in 2022)
Family coverage - $15,000 (up from $14,100 in 2022)
HSA Contribution Limits
Self-only coverage - $3,850 (up from $3,650 in 2022)
Family coverage - $7,750 (up from $7,300 in 2022)
Individuals 55 or older may make an additional $1,000 “catch-up” contribution to their HSAs
This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.
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