The 2021 Health Savings Account (HSA) and High Deductible Health Plan (HDHP) limits have been announced. The IRS released Rev. Proc. 2020-32, which provides the 2021 inflation-adjusted amounts as described below.
Maximum HSA Contribution
The maximum contribution will increase to $3,600 for individuals with self-only coverage and to $7,200 for individuals with family coverage for 2021. This is up from the 2020 maximum contribution limits of $3,550 and $7,100, respectively. The additional HSA catch-up contribution of $1,000 for individuals age 55 or older is unchanged.
Minimum HDHP Deductible
The minimum deductible for an HSA-compatible HDHP will remain unchanged for plan years beginning in 2021, which is $1,400 for self-only coverage and $2,800 for family coverage.
Maximum HDHP Out-of-Pocket Expense
The maximum participant cost share, not including premiums, will increase to $7,000 for self-only coverage and to $14,000 for family coverage for plan years beginning in 2021. The 2020 limits are $6,900 for self-only coverage and $13,800 for family coverage.
The above limitations apply to HSA-compatible, or qualified, high deductible health plans. Health plans that are not paired with an HSA are not subject to these limitations. However, all non-grandfathered group health plans must comply with the Affordable Care Act (ACA) maximum out-of-pocket limits. These limits were released earlier this month for 2021 plan years: $8,550 for self-only coverage and $17,100 for family coverage.
Reach out to your Hylant representative for further information.
The above information does not constitute advice. Always contact your employee benefits broker or trusted adviser for insurance-related questions.