Each year the IRS announces inflation-adjusted limits for Health Savings Accounts (HSA) and High Deductible Health Plans (HDHP).
What is an HSA?
- Gives you more control over health care decisions
- Allows you to shop around for care based on quality and cost
- You contribute pre-tax dollars into an HSA and funds accumulate tax-free
- HSAs carry over year to year and can even be saved to use after you retire
- HSA funds are yours to keep (or invest) even if you leave the company
The IRS limits for HSA contributions and HDHP cost-sharing all increased for 2018.
According to the IRS :
- HSA Contribution Limits: The 2018 annual HSA contribution limit for individuals with self-only HDHP coverage will be $3,450 (a $50 increase from 2017), and the 2018 limit for individuals with family HDHP coverage will be $6,900 (a $150 increase from 2017).
- HDHP Minimum Deductibles: The 2018 minimum annual deductible for self-only HDHP coverage will be $1,350 (a $50 increase from 2017), and the 2018 minimum annual deductible for family HDHP coverage will be $2,700 (a $100 increase from 2017).
- HDHP Out-of-Pocket Maximums: The 2018 limit on out-of-pocket expenses (including items such as deductibles, copayments, and coinsurance, but not premiums) for self-only HDHP coverage will be $6,650 (a $100 increase from 2017), and the 2018 out-of-pocket limit for family HDHP coverage will be $13,300 (a $200 increase from 2017).
If you are interested in rolling out a HSA/HDHP plan for your employees, Contact Us! We have a game plan for you to follow including preparation suggestions, sample announcements, educational materials and communication for you to use during open enrollment!