May 11, 2022
IRS Announces Inflation Adjustments for 2023 HDHPs and HSAs
The IRS has announced the inflation adjustments for 2023 High Deductible Health Plans (HDHP) and Health Savings Accounts (HSA). These adjustments include maximum HSA contributions, minimum deductible amounts and maximum out-of-pocket (OOP) limits.
The following adjustments apply to the calendar year 2023.
Contributions to an HSA:
- For the calendar year 2023, the annual limitation on contributions to an HSA under §223(b)(2)(A) for an individual with self-only coverage under an HDHP is $3,850.
- The annual limitation on contributions to an HSA under §223(b)(2)(B) for an individual with family coverage under an HDHP is $7,750.
Additional contribution amount (individuals age 55 and older)
- The catch-up contribution limit to an HSA under §223(b)(3)(B) is $1,000.
- There is no change from 2022.
High Deductible Health Plans
- An HDHP is defined under §223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,500 for self-only coverage or $3,000 for family coverage.
- The annual out-of-pocket expenses (deductibles, copayments and other amounts, but not premiums) do not exceed $7,500 for self-only coverage or $15,000 for family coverage.
2023 |
2022 |
|
Minimum Individual Deductible |
$1,500 |
$1,400 |
Minimum Family Deductible |
$3,000 |
$2,800 |
Maximum Individual OOP |
$7,500 |
$7,050 |
Maximum Family OOP |
$15,000 |
$14,100 |
Maximum Individual Contribution |
$3,850 |
$3,650 |
Maximum Family Contribution |
$7,750 |
$7,300 |
Minimum Individual Embedded Deductible |
$3,000* |
$2,800 |
Minimum Family Embedded Deductible |
$3,000 |
$2,800 |
*According to IRS guidance, an individual deductible (an embedded deductible) provided under a family HDHP must be at least the family minimum for the year ($3,000 in 2023). Due to system limitations, groups with an embedded deductible family HDHP may not offer an employee-only HDHP with a deductible less than the family minimum ($3,000) unless separate benefit agreements are established for employee-only and family HDHP coverage. The IRS individual minimum is $1,500 for 2023.
Please note that the HDHP limits on out-of-pocket expenses and the maximum out-of-pocket limits under the Affordable Care Act (“ACA”) are NOT the same. The maximum out-of-pocket limits for 2023 are $9,100 for self-only coverage and $18,200 for other than self-only coverage.
