IRS Adjusts Out-of-Pocket Maximums for HSAs, HDHPs for 2018

This month, the Internal Revenue Service released the 2018 inflation-adjusted amounts for health savings accounts and high-deductible health plans.

The two types of account are related, as all HDHP participants must also have an accompanying HSA. But HSAs are also available to participants in more traditional health plans that do not have high deductibles.

If you have HDHPs for your employees or are considering offering one for 2018, you’ll want to pay attention to the changes for that year:

  • The HSA maximum calendar-year contribution will be raised to $3,450 in 2018 from the current $3,400 for self-only coverage, and to $6,900 for other than self-only coverage from the current $6,750.
  • The HDHP minimum annual deductible will rise to $1,350 for self-only coverage from the current $1,300. The HDHP minimum annual deductible will rise to $2,700 for other than self-only coverage from the current $2,600.
  • The HDHP maximum out-of-pocket expense for self-only coverage will increase to $6,650 from the current $6,550. And the HDHP maximum out-of-pocket expense for other than self-only coverage will rise to $13,300 from $13,100.

 

Please note that if you have a grandfathered plan, the Affordable Care Act limits the out-of-pocket maximum. For 2014, the limit was equal to the out-of-pocket maximum for HSAs.

So, the maximum out-of-pocket that may be used under a non-grandfathered health plan in 2018 will be $7,350 for self-only coverage and $14,700 for other than self-only coverage.

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