EBIA Weekly Newsletter

IRS Announces 2018 HSA Contribution Limits, HDHP Minimum Deductibles, and HDHP Out-of-Pocket Maximums

   May 11, 2017

Rev. Proc. 2017-37 (May 4, 2017)

Available at https://www.irs.gov/pub/irs-drop/rp-17-37.pdf

The IRS has released the 2018 cost-of-living adjusted limits for health savings accounts (HSAs) and high-deductible health plans (HDHPs). Here are the details:

  • 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).

EBIA Comment: In contrast to 2017, when only one of these amounts changed from the prior year, all of them are scheduled to increase for 2018. The HDHP minimum deductibles are increasing for the first time since 2015. 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. For more information, see EBIA’s Consumer-Driven Health Care manual at Sections X (“HSAs: Required HDHP Coverage”) and XII (“HSAs: Contributions”). See also EBIA’s Cafeteria Plans manual at Section XVI.K (“Special Considerations for HSAs Offered Through Cafeteria Plans”). You may also be interested in our recorded webinar, “Workplace Health Savings Accounts (HSAs)(recorded 10/5/16).

Contributing Editors: EBIA Staff.