Inflation Brings HSA/HDHP Limits Increase for 2023
Health Savings Accounts and High Deductible Health Plans Receive Limits Increases
On April 29, 2022, 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. These limits include:
- The maximum HSA contribution limit;
- The minimum deductible amount for HDHPs; and
- The maximum out-of-pocket expense limit for HDHPs.
These limits vary based on whether an individual has self-only or family coverage under an HDHP. 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 age 55 or older may make an additional $1,000 “catch-up” contribution to their HSAs. 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).
HSA Action Steps For An Employer
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 that allow employees to make pre-tax HSA contributions should update their plan communications for the increased contribution limits.
HSA/HDHP Limits Chart
The following chart shows the HSA and HDHP limits for 2023 as compared to 2022. It also includes the catch-up contribution limit that applies to HSA-eligible individuals who are age 55 or older, which is not adjusted for inflation and stays the same from year to year.
| Type of Limit | 2022 | 2023 | Change | |
|---|---|---|---|---|
| HSA Contribution Limit | Self-only | $3,650 | $3,850 | Up $200 |
| HSA Contribution Limit | Family | $7,300 | $7,750 | Up $450 |
| HSA Catch-up Contributions (not subject to adjustment for inflation) | Age 55 or older | $1,000 | $1,000 | No change |
| HDHP Minimum Deductible | Self-only | $1,400 | $1,500 | Up $100 |
| HDHP Minimum Deductible | Family | $2,800 | $3,000 | Up $200 |
| HDHP Maximum Out-of-pocket Expense Limit (deductibles, copayments and other amounts, but not premiums) | Self-only | $7,050 | $7,500 | Up $450 |
| HDHP Maximum Out-of-pocket Expense Limit (deductibles, copayments and other amounts, but not premiums) | Family | $14,100 | $15,000 | Up $900 |
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