Tag Archives: High deductible plans

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

Average Americans Can’t Afford Insurance Deductibles

Just because you have health insurance doesn’t necessarily mean you can afford all your medical bills, especially if you have a high deductible. So sometimes, it pays to negotiate.

A Commonwealth Fund study released this week found that nearly a quarter of working-age Americans who had health insurance in 2014 were “underinsured.” The report cited rising deductibles — the amount you must pay for care before insurance coverage begins — as a growing factor.

More people than ever before have health plans with deductibles, the report found, and more people have deductibles that are high relative to their incomes. Half of those who were underinsured reported problems paying medical bills or said they were paying off medical debt, the report found.

High deductibles squeeze many families because most Americans lack significant savings to help cover sizable bills. “Most Americans don’t have that much money in the bank,” said Karen Pollitz, a health policy expert with the Kaiser Family Foundation.

So consumers may be interested to know that the amount of a medical bill is not necessarily set in stone, said Erin Singleton, chief of mission delivery for the Patient Advocate Foundation, which assists people with chronic conditions. You can ask whether a discount can be applied, or whether the hospital has funds available for patients with a financial hardship.

Often, people are embarrassed to talk to professionals about discounting their bills, said Martin B. Rosen, a co-founder of Health Advocate, which helps patients with employer-based coverage. But, he said, “There’s no harm in asking” — just be polite.

To read more, click here.

Jeffrey R. Ungvary President

Jeffrey R. Ungvary