Tag Archives: HDHP

2018 HSA IRS Plan Maximums

The IRS recently released Revenue Procedure 2017-37, which provides information on the limits for Health Savings Accounts (HSAs) for 2018. The annual contribution limitation on deductions for individuals with self-only coverage under a high deductible health plan will be $3,450. The deduction limitation for an individual with family coverage will be $6,900.

Please note, these limits reflect current law. Under the American Health Care Act (AHCA), passed by the House of Representatives earlier this month, the contribution limit rises to the statutory out-of-pocket maximum  ($6,650/$13,300) beginning in 2018. The AHCA is not yet a law. We will provide modified contribution limits if legislation subsequently changes the current 2018 limits.

Minimum Deductible for HDHP: In order for a health insurance plan to be considered a “High Deductible Health Plan” for 2018, the deductible must be at least $1,350 for self-only coverage and $2,700 for family coverage.

Maximum Out-of-Pocket: Out-of-pocket expenses may not exceed $6,650 for self-only coverage and $13,300 for family coverage.

These changes will go into effect for calendar year 2018.

**Please note that these limits are subject to change.  The American Health Care Act, if passed, includes changes related to Health Savings Account Limits.

Health Savings Account (HSA)- New Annual Maximums 

Coverage Level 2017 2018
HSA Contribution Individual $3,400 $3,450
Amounts Family $6,750 $6,900
>55 Catch-up $1,000 $1,000
Min HDHP Individual $1,300 $1,350
Deductible Amounts Family $2,600 $2,700
Max Out of Pocket Individual $6,550 $6,650
HDHP Amounts Family $13,100 $13,300

High Deductible Plans on the Rise

A growing number of Americans are paying lower health insurance premiums in exchange for high deductibles, taking a gamble that saving money now won’t put them in a tough financial situation if they’re hit with high medical bills.

As we enter open enrollment season, it’s important to at least consider these low-premium plans to determine if the increasingly popular risk is right for you.

High-deductible health plans are health insurance policies that require policyholders to spend a certain amount of money on their health care before coverage kicks in. For 2015, an individual plan with a deductible of at least $1,300 or a family policy with a deductible of at least $2,600 falls into this category. More benignly referred to as “consumer-directed health plans,” they’re attractive to employers and individuals alike because they come with lower premiums and reduce the use of health care services overall.

“Deductibles are a fairly new concept,” says Sabrina Corlette, a senior research fellow with Georgetown University’s Center on Health Insurance Reforms. Over time, “people realized it was a way to reduce the use of health care services. Because if people are required to pay for some of these costs up front, they are less likely to use nonessential services.”

HDHPs Are on the Rise

To counteract the rising cost of health care in recent years, deductibles have grown in popularity and price tag. In 2014, 80 percent of insured workers had policies that included a deductible, according to the 2014 Employer Health Benefits Survey from the Kaiser Family Foundation Health Research & Educational Trust. The average annual deductible among employees has risen 47 percent since 2009, from $826 to $1,217.

Fortunately, provisions under the Affordable Care Act can help contain costs. In 2015, an individual will not pay more than $6,450 in out-of-pocket costs, and a family’s out-of-pocket maximum is set at $12,900.

To read more, click here.

Jeffrey R. Ungvary President

Jeffrey R. Ungvary

IRS Announces Inflation-Adjusted Increase for HSAs

The IRS released increases for HSAs and high-deductible health plans (HDHPs) for 2015.

The maximum annual HSA contribution for self-only HDHP coverage will increase from $3,300 to $3,350. The maximum annual HSA contribution for family HDHP coverage will increase from $6,550 to $6,650.

  • The age 55 catch-up contribution continues to be $1,000
  • The minimum HDHP deductible limit changes:
    • Self-only coverage increased from $1,250 to $1,300
    • Family coverage increased from $2,500 to $2,600

To read more, click here.

Jeffrey R. Ungvary

President

Jeffrey R. Ungvary