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HSA/HDHP LIMITS INCREASE FOR 2020

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HSA/HDHP LIMITS INCREASE FOR 2020

 

On May 28, 2019, the IRS released Revenue Procedure 2019-25 to announce the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2020. These limits include: 

  • The maximum HSA contribution limit. 
  • The minimum deductible amount for HDHPs; and 
  • The maximum out-of-pocket expense limit for HDHPs.

These limits vary based on whether an individual has self-only or family coverage under an HDHP. 

The IRS has increased the maximum HSA contribution for 2020. Eligible individuals with self-only HDHP coverage will be able to contribute up to $3,550 for 2020, while eligible individuals with family HDHP coverage will be able to contribute up to $7,100 for 2020. The HDHP cost-sharing limits also increase for 2020.  

 

ACTION STEPS

Because the cost-sharing for HDHPs change for 2020, employers who sponsor these plans may need to make plan design changes for plan years beginning in 2020. Also, employers who allow employees to make pre-tax HSA contributions should confirm that their benefit election forms have been updated for the HSA contributions limits for 2020.

 

HSA/HDHP Limits

The following chart shows the HSA and HDHP limits for 2020 as compared to 2019. It also includes the catch-up contribution limit that applies to HSA-eligible individuals who are age 55 or older, which is not adjusted for inflation and stays the same from year to year.

 

Type of Limit

2019

2020

Change

HSA Contribution Limit

Self-only

$3,500

$3,550

Up $50

Family

$7,000

$7,100

Up $100

HSA Catch-up Contributions (not subject to adjustment for inflation)

Age 55 or older

$1,000

$1,000

No change

HDHP Minimum Deductible

Self-only

$1,350

$1,400

Up $50

Family

$2,700

$2,800

Up $100

HDHP Maximum Out-of-pocket Expense Limit (deductibles, copayments and other amounts, but not premiums)

Self-only

$6,750

$6,900

Up $150

Family

$13,500

$13,800

Up $300

 

We're Here To Help

With more than 20 years of experience in the industry, Berg Andonian is a team of healthcare brokers that takes pride in helping our clients find the right coverage options for their employees.  We will gladly work with your team to clarify their benefit accounts and options or help you design new benefit plans and account offerings for next open enrollment season. Call us today to see what we can do for you! 


Published June 4, 2019.