IRS Announces 2013 HSA Contribution Limits, Out-Of-Pocket Maximums And HDHP Minimum Deductibles

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.

Please contact your Foster Swift employee benefits professional if you have any questions.

(See Rev. Proc. 2012-26 and EBIA Weekly May 3, 2012)

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