HDHP and HSA Annual Limits Increase for 2016
The U.S. Treasury Department has announced through Revenue Procedure 2015-30 that three of the annual limits governing high deductible health plans (HDHPs) and health savings accounts (HSAs) will increase for calendar year 2016.
In order to maintain HSA-eligible status, an HDHP’s annual deductible still must be at least $1,300 for self-only coverage and $2,600 for family coverage. These minimum deductibles have not changed from 2015.
The maximum annual out-of-pocket expense has been increased for calendar year 2016 to $6,550 for self-only coverage (up from $6,450 for 2015) and $13,100 for family coverage (up from $12,900 for 2015). These limits apply to all deductibles, co-payments, coinsurance, and other out-of-pocket amounts on a combined basis, but they do not include premiums.
It is important for employers to keep in mind that maximum out-of-pocket expense limits also apply under the Patient Protection and Affordable Care Act of 2010 (PPACA) for all "non-grandfathered" employer-sponsored group health plans, even if the plans are not HDHPs. The maximum out-of-pocket limits under PPACA are different than those that apply to HDHPs. Thus, non-HDHPs may have out-of-pocket maximums in 2015 of $6,600 for self-only coverage and $13,200 for family coverage. The PPACA maximums for 2016 are $6,850 for self-only coverage and $13,700 for family coverage.
The maximum annual HSA contribution increased for those with family coverage but remains the same for those with self-only coverage. For calendar year 2016, the maximum annual HSA contribution limits are $3,350 for an individual with self-only coverage under an HDHP and $6,750 for an individual with family coverage under an HDHP. The contribution limits for calendar year 2015 were $3,350 and $6,650, respectively. The additional amount that individuals who are age 55 or older may contribute is set by statute and remains at $1,000 for 2016.
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
, Sarah K. Funke
, or the Ice Miller 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.