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Benefits

IRS Announces 2023 HSA and EBHRA Contribution Limits, HDHP Minimum Deductibles, HDHP Out-of-Pocket Maximums

EBIA  

EBIA  

Rev. Proc. 2022-24 (Apr. 29, 2022)

The IRS has released the 2023 cost-of-living adjusted limits for health savings accounts (HSAs), high-deductible health plans (HDHPs), and excepted benefit health reimbursement arrangements (EBHRAs). Here are the details:

  • HSA Contribution Limits. The 2023 annual HSA contribution limit is $3,850 for individuals with self-only HDHP coverage (up from $3,650 in 2022), and $7,750 for individuals with family HDHP coverage (up from $7,300 in 2022).
  • HDHP Minimum Deductibles. The 2023 minimum annual deductible is $1,500 for self-only HDHP coverage (up from $1,400 in 2022) and $3,000 for family HDHP coverage (up from $2,800 in 2022).
  • HDHP Out-of-Pocket Maximums. The 2023 limit on out-of-pocket expenses (including items such as deductibles, copayments, and coinsurance, but not premiums) is $7,500 for self-only HDHP coverage (up from $7,050 in 2022), and $15,000 for family HDHP coverage (up from $14,100 in 2022).
  • EBHRA Contribution Limit. The maximum amount that may be made newly available for plan years beginning in 2023 is $1,950 (up from $1,800 in 2022).

EBIA Comment: Because the increases to the HDHP out-of-pocket maximums are larger than the increases to the HSA contribution limits, some individuals may have to pay more out-of-pocket expenses without the benefit of the HSA tax break. The catch-up contribution limit (for HSA-eligible individuals aged 55 or older) is set forth in Code § 223(b)(3) and remains at $1,000. EBHRAs, first available in 2020, are limited-dollar, nonintegrated HRAs that qualify as excepted benefits. They can be offered by employers of any size and must meet specified requirements. For more information, see EBIA’s Consumer-Driven Health Care manual at Sections X (“HSAs: Required HDHP Coverage”), XII (“HSAs: Contributions”), and XXVIII.C (“Excepted Benefit HRAs (EBHRAs)”). See also EBIA’s Cafeteria Plans manual at Section XVI.K (“Special Considerations for HSAs Offered Through Cafeteria Plans”). In addition, you may be interested in our webinar “Learning the Ropes: An Introduction to HRAs and HSAs” (recorded 4/14/2022).

Contributing Editors: EBIA Staff.

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