BLOG_ IRS Releases 2019 HSA Limits - TIM WOOLLEY

Earlier this month, the IRS announced new 2019 HSA contribution and out-of-pocket maximum limits. In 2019, there will be a $50 increase in the annual contribution limit for single-only coverage and a $100 increase in the annual contribution limit for family coverage. These increases are a change from last year’s when the family coverage annual contribution went up by $150, while the single-only coverage remained at the same $50 increase. For 2019, the single -only coverage contribution maximum will be $3,500 while the family coverage contribution maximum will be $7,000. Although, the current administration had previously hinted that they would like to start increasing the HSA contribution limits even further, it looks like we will have to wait until next year for the larger annual contribution increases.  

The out-of-pocket maximum for high deductible health plans (HDHP) increased $100 for single -only coverage and $200 for family coverage. The new out-of-pocket maximums for 2019 are now $6,750 for single -only coverage and $13,500 for family coverage. The minimum deductible for HDHPs has remained the same for both self-only coverage and family coverage, staying at $1,350 and $2,700 respectively. It is interesting to note that the out-of-pocket maximum increased to a higher amount than the annual contribution limit for both single -only and family coverage. In other words, members on a Bronze level plan in the Health Insurance Marketplace may end up paying more in costs next year. This same outpacing situation happened in 2018, but did not happen in 2017. 

The IRS has advised that these numbers will likely not change moving forward. This is in direct response to the situation earlier this year when the IRS recalculated the 2018 limits mid-year and adjusted the annual contribution limit down $50 for family coverage. This recalculation led to a great deal of confusion, after which the IRS provided transitional relief to essentially keep the limit the same as it was initially advised.  

To find out how these changes to HSA plans will impact your company, or to find out if an HSA plan is the right fit for your company contact your consultant today! 

Tim Woolley

Tim Woolley

Tim's focus is consulting for the small group market. He provides advice and guidance to clients on the design, implementation and management of their benefit strategies.