HDHP and HSA Annual Limits Remain the Same for 2011

         In Revenue Procedure 2010-22, the U.S. Treasury Department recently announced the annual limits that affect high deductible health plans (HDHPs) and health savings accounts (HSAs) for 2011 will be the same as the 2010 limits.  This means, in order to maintain an HDHP's HSA-eligible status, an employer sponsoring an HSA-eligible HDHP in 2011 will need to ensure the HDHP's deductible is at least $1,200 for self-only coverage and $2,400 for family coverage.  In addition, the maximum out-of-pocket expense that can be incurred by a participant in an HDHP is still $5,950 for self-only coverage and $11,900 for family coverage.  This limit applies to all deductibles, co-payments, coinsurance, and other out-of-pocket amounts on a combined basis.  It does not include premiums.

         The maximum contribution an individual may make to an HSA also remains the same.  The maximum annual contribution that can be made to a health savings account in 2011 is $3,050 for individuals with self-only health coverage and $6,150 for individuals with family health coverage. Individuals who are 55 or older may contribute an additional $1,000 in 2011.

         For more information about HDHPs and HSAs, or to discuss your current and future health plan design questions, please contact Christopher S. Sears, Tara Schulstad Sciscoe, Mary Beth Braitman, Terry A.M. Mumford, Melissa Proffitt Reese or the Ice Miller LLP Employee Benefits attorney with whom you work.