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.
