IRS Announces 2018 HSA Adjustments

Recently the IRS issued it’s anticipated Health Savings Account (HSA) guidance for calendar year 2018.  Listed below are the changes to current IRS rules affecting HSAs, and qualified high deductible health insurance plans, effective in 2018:

  • HSA Contribution Maximum (Individual/Self Only Coverage): $3,450 ($3,400 in ’17).
  • HSA Contribution Maximum (Family Coverage): $6,900 ($6,750 in ’17).
  • HSA Annual “catch up” contribution amount for eligible individuals 55 years of age and older remains $1,000.

HSA Qualified High Deductible Insurance coverage changes:

– Minimum deductible/Self Only Coverage/Non-Embedded Deductible*: $1,350 ($1,300 in ’17)
– Minimum deductible/Self Only Coverage/Embedded Deductible*: $2,700 ($2,600 in ’17)
– Minimum deductible/Family Coverage/Embedded and Non-Embedded Deductible*: $2,700 ($2,600 in ’17)

– Out of Pocket Maximum/Self Only Coverage: $6,650 ($6,550 in ’17).
– Out of Pocket Maximum/Family Coverage: $13,300 ($13,100 in ’17).

Note: The Affordable Care Act’s (ACA) out of pocket limits placed on non-grandfathered health insurance plans impacts an HSA qualified plans family out of pocket maximum as follows:
  • For self-only and families with an embedded out-of-pocket maximum, the maximum amounts are: $6,650 individual and $13,300 family.
  • For self-only and family with a non-embedded deductible, the maximum amounts are: $6,650 individual and $7,350 family.
  • Note: the ACA’s 2018 maximum out of pocket limits applicable to non-grandfathered plans increases to $7,350 for self only coverage (from $7,150 in ’17); and $14,700 for family coverage (from $14,300 in ’17).
* Plans with Embedded family deductibles only require a single covered family member to meet the individual deductible amount before coverage begins.  Non-embedded (sometimes called aggregate deductible) plans require one or more family members to meet the entire family deductible amount before coverage applies.