Regulatory Update

The Lead Summer 2015 - Lifetime Benefit Solutions

IRS Announces 2016 HSA Contribution Limits, HDHP Minimum Deductibles & HDHP Out-of- Pocket Maximums

IRS 2016 Contribution LimitsThe Department of Health and Human Services (HHS) has finalized regulations with the 2016 payment parameters for health care reform’s premium stabilization programs and cost-sharing requirements. These parameters include the maximum annual limit on cost sharing: For 2016, they are $6,850 for self-only coverage and $13,700 for other than self-only coverage (compared to $6,600 and $13,200, respectively, for 2015).

The IRS has now released its cost-of-living adjustments affecting health savings accounts (HSAs) and high-deductible health plans (HDHPs).

• HSA Contribution Limits. The 2016 annual HSA contribution limit for individuals with self-only HDHP
coverage is $3,350 (unchanged from 2015), and the limit for individuals with family HDHP coverage is
$6,750 (a $100 increase from 2015).

• HDHP Minimum Required Deductibles. The 2016 minimum annual deductible for self-only HDHP coverage is $1,300 (unchanged from 2015) and the minimum annual deductible for family HDHP coverage is $2,600 (unchanged from 2015).

• HDHP Out-of-Pocket Maximums. The 2016 maximum limit on out-of-pocket expenses (including items such as deductibles, copayments, and coinsurance, but not premiums) for self-only HDHP coverage is $6,550 (a $100 increase from 2015), and the limit for family HDHP coverage is $13,100 (a $200 increase from 2015).

Please visit http://www.irs.gov/pub/irs-drop/rp-15-30.pdf for a copy of the IRS publication.

 

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