HDHP and HSA Annual Limits Increase for 2015
Employers that are beginning to plan for their 2015 benefit offerings need to be aware that the U.S. Treasury Department recently announced, in Revenue Procedure 2014-30
, that annual limits affecting high deductible health plans (HDHPs) and health savings accounts (HSAs) will increase for calendar year 2015.
In order to maintain an HDHP's HSA-eligible status, an employer sponsoring an HSA-eligible HDHP in 2015 will need to ensure that the HDHP's annual deductible is at least $1,300 for self-only coverage and at least $2,600 for family coverage. These minimum deductibles were $1,250 and $2,500, respectively, for calendar year 2014.
In addition, the maximum annual out-of-pocket expense that can be incurred by a participant in an HDHP has been increased for calendar year 2015 to $6,450 for self-only coverage (up from $6,350 for 2014) and $12,900 for family coverage (up from $12,700 for 2014). This limit applies to all deductibles, co-payments, coinsurance, and other out-of-pocket amounts on a combined basis, but it does not include premiums. It is important for employers to keep in mind that, under the Patient Protection and Affordable Care Act of 2010 (PPACA), these maximum out-of-pocket expense limits also have implications for all "non-grandfathered" employer-sponsored group health plans, even if the plans are not HDHPs.
The maximum contribution an individual may make to an HSA rose, too. For calendar year 2015, the maximum annual HSA contribution limits are $3,350 for an individual with self-only coverage under an HDHP and $6,650 for an individual with family coverage under an HDHP. The contribution limits for calendar year 2014 were $3,300 and $6,550, respectively. The additional amount that individuals who are age 55 or older may contribute is set by statute and remains at $1,000 for 2015.
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
, Melissa Proffitt Reese
, Sarah K. Funke
, or the Ice Miller LLP Employee Benefits
attorney with whom you work.
This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.