The Internal Revenue Service recently released the 2016 health savings account (“HSA”) contribution limits, out-of-pocket maximums and high deductible health plan (“HDHP”) deductibles. Each of the cost-of-living adjusted amounts is set forth below.
HSA Contribution Limits. The 2016 annual HSA contribution limit for an individual with self-only HDHP coverage is $3,350, which remains unchanged from 2015. The 2016 annual HSA contribution limit for an individual with family HDHP coverage is $6,750, increasing $100 from 2015.
HDHP Minimum Annual Deductibles. The 2016 HDHP minimum annual deductible for an individual with self-only coverage is $1,300, and the minimum annual deductible for an individual with family HDHP coverage is $2,600. The HDHP minimum annual deductible amounts have not changed from 2015.
HDHP Out-of-Pocket Maximums. The 2016 HDHP out-of-pocket maximum for an individual with self-only coverage is $6,550, and the out-of-pocket maximum for an individual with family coverage is $13,100. The HDHP out-of-pocket maximum amounts have increased by $100 and $200, respectively, from 2015. (Out-of-pocket expenses include co-insurance, co-payments and deductibles, but not HDHP insurance premiums.)
Although each of the foregoing increased limits will take effect January 1, 2016, the new limits for each category (i.e., self-only or family) were not identically increased. Such variations may have practical consequences, such as causing an individual to incur more out-of-pocket expenses because the HSA contribution limit is not increasing at the same rate as the HDHP minimum annual deductibles and out-of-pocket maximums.
Katila L. Howard