|August 23, 2012|
Previously published on Summer 2012
The Internal Revenue Service recently released the 2013 health savings account ("HSA") contribution limits, out-of-pocket maximums and high deductible health plan ("HDHP") deductibles. Each of the cost-of-living adjusted amounts is set forth below.
HSA Contribution Limits. The 2013 annual HSA contribution limit for an individual with self-only HDHP coverage is $3,250, and the limit for an individual with family HDHP coverage is $6,450. The 2013 annual HSA contribution limits have increased by $150 and $200, respectively, from 2012.
HDHP Minimum Annual Deductibles. The 2013 HDHP minimum annual deductible for an individual with self-only coverage is $1,250, and the minimum annual deductible for an individual with family HDHP coverage is $2,500. The HDHP minimum annual deductible amounts have increased by $50 and $100, respectively, from 2012.
HDHP Out-of-Pocket Maximums. The 2013 HDHP out-of-pocket maximum for an individual with self-only coverage is $6,250, and the out-of-pocket maximum for an individual with family coverage is $12,500. The HDHP out-of-pocket maximum amounts have increased by $200 and $400, respectively, from 2012. (Out-of-pocket expenses include co-insurance, co-payments and deductibles, but not HDHP insurance premiums.)
Although each of the foregoing increased limits will take effect January 1, 2013, the new limits for each category (i.e., self-only or family) were not identically increased. Such variations may have practical consequences, such as causing an individual to incur more out-of-pocket expenses because the HSA contribution limit is not increasing at the same rate as the HDHP minimum annual deductibles and out-of-pocket maximums. In addition, the greater difference between the 2013 HDHP minimum annual deductibles and out-of-pocket maximums give plan sponsors greater flexibility in determining potential deductibles. (HDHP deductibles can be set as high as the applicable out-of-pocket maximum.) However, beginning in 2014, the foregoing flexibility will not be available to non-grandfathered plans under the Patient Protection and Affordable Care Act when the limit on annual deductibles takes effect.