The 2023 inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) were announced by the IRS. Each year the law requires the IRS to announce the limits by June 1st. These limits include the maximum HSA contribution limit, the minimum deductible amount for HDHPs, and the maximum out-of-pocket expense limit for HDHPs. Under an HDHP, limits vary depending on whether an individual has family or self-only coverage.
The updated contribution limits for HSAs are effective January 1, 2023. For plan years beginning on or after this date, the adjusted HDHP cost-sharing limits apply.
Eligible individuals with self-only HDHP coverage can contribute up to $3,850 to their HSAs for 2023, an increase of $200 from 2022. Individuals with family HDHP coverage can contribute up to $7,750 to their HSAs for 2023, an increase of $450 from 2022. An additional $1,000 “catch-up” contribution can be made to HSAs belonging to individuals 55 years of age and older.
The 2023 minimum deductible amount for HDHPs is $1,500 for self-only coverage and $3,000 for family coverage. From 2022, the limit increased $100 for self-only coverage and $200 for family coverage. For 2023, the HDHP maximum out-of-pocket limit is $7,500 for self-only coverage and $15,000 for family coverage, up $450 for self-only coverage and $900 for family coverage in 2022.
When preparing for the 2023 plan year, employers that sponsor HDHPs should review their plan’s cost-sharing limits. Additionally, employers that allow employees to make pre-tax HSA contributions should update their plan communications to reflect the increased contribution limits. If you have any questions, please contact your dedicated Creative Benefits, Inc. team member.