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HSA & HDHP Limits Increase for 2023 | Schauer Group Employer’s Guide

Home » Resource Library » HSA & HDHP Limits Increase for 2023 | Schauer Group Employer’s Guide

Recently, the IRS released Revenue Procedure 2022-24 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2023. The IRS is required to publish these limits by June 1 of each year.

The limits include:

  • The maximum HSA contribution limit
  • The minimum deductible amount for HDHPs
  • The maximum out-of-pocket expense limit for HDHPs

These limits vary based on whether individuals have self-only or family coverage under an HDHP.

AT A GLANCE

SOURCE: IRS

Eligible individuals with self-only HDHP coverage will be able to contribute $3,850 to their HSAs for 2023, up from $3,650 for 2022. Eligible individuals with family HDHP coverage will be able to contribute $7,750 to their HSAs for 2023, up from $7,300 for 2022. Individuals aged 55 or older may make an additional $1,000 “catch-up” contribution to their HSAs. The adjusted contribution limits for HSAs take effect as of Jan. 1, 2023.

The minimum deductible amount for HDHPs increases to $1,500 for self-only coverage and $3,000 for family coverage for 2023 (up from $1,400 for self-only coverage and $2,800 for family coverage for 2022). The HDHP maximum out-of-pocket expense limit increases to $7,500 for self-only coverage and $15,000 for family coverage for 2023 (up from $7,050 for self-only coverage and $14,100 for family coverage for 2022). The adjusted HDHP cost-sharing limits take effect for the plan year beginning on or after Jan. 1, 2023.

ACTION STEPS

Employers that sponsor HDHPs should review their plan’s cost-sharing limits (minimum deductibles and maximum out-of-pocket expense limit) when preparing for the plan year beginning in 2023.

Also, employers who allow employees to make pre-tax HSA contributions should update their plan communications for the increased contribution limits.

Questions? Contact our team.


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This content is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © Zywave, Inc. All rights reserved.
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