HDHP and HSA Annual Limits Increase in 2010
The U.S. Treasury Department recently announced annual increases that affect high deductible health plans (HDHP) and health savings accounts (HSA) for 2010. Employers sponsoring HSA-eligible high deductible health plans in 2010 will need to raise the HDHP's deductible to at least $1,200 for self-only coverage and $2,400 for family coverage to maintain the HDHP's HSA-eligible status. These minimum deductibles were $1,150 and $2,300 for 2009. In addition, the maximum out-of-pocket expense that can be incurred by a participant in an HDHP increased to $5,950 for self-only coverage and $11,900 for family coverage.
The maximum contribution an individual may make to an HSA rose, too. The maximum annual contribution that can be made to a health savings account in 2010 is $3,050 for individuals with self-only health coverage and $6,150 for individuals with family health coverage. The limits for 2009 were $3,000 and $5,859 respectively. Individuals who are age 55 or older may contribute an additional $1,000 in 2010.
The Treasury's announcement about HDHP and HSA modifications will need to be a part of employers' discussions on how to structure group health plan offerings in 2010. As health care costs continue to rise, many employers continue to turn to HDHPs and HSAs to lower spending on health care costs. These plans require employees to pay a larger amount toward their own health care costs, which they can fund through tax free contributions to HSAs. Employers seek to enjoy savings through either lower premiums for insurance or lower claims costs in a self-insured arrangement.
The Treasury's announcement was made in Revenue Procedure 2009-29, which can be found by clicking here.
For more information about HDHPs and HSAs, or to discuss your current and future health plan design questions, please contact Christopher S. Sears,
Melissa Proffitt Reese, Mary Beth Braitman,
Terry A.M. Mumford, Tara Schulstad Sciscoe, or the
Ice Miller LLP Employee Benefits attorney with whom you work. |
