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2022 IRS Limits – What We Know So Far

With 2022 approaching fast, the IRS has begun to release some of next year’s indexing adjustments and benefit limits for health and welfare plans.

For employers, one of the most-watched adjustments is the required contribution percentage used to determine whether employer-sponsored health coverage is considered affordable under the Affordable Care Act (ACA). The IRS recently decreased the affordability baseline from 9.83% in 2021 to 9.61% in 2022. As a reminder, Applicable Large Employers (ALEs) subject to the ACA employer mandate have to offer affordable, minimum value coverage to their ACA full-time employees. For 2022, this means that a job-based health plan’s employee-only coverage needs to cost 9.61% or less of the employee’s household income to be considered affordable. The cost is the amount the employee pays for the insurance, not the plan’s total premium. For 2022, an affordable, minimum value health plan that costs employees no more than $103.14 per month for employee-only coverage will automatically meet the ACA’s affordability standard. Failure to offer affordable coverage could result in employer shared responsibility payments.

The IRS also released 2022 HSA contribution limits, minimum annual HDHP deductibles, plan out-of-pockets maximums for HSA eligibility, and out-of-pocket maximums for ACA compliance:

2021

2022

HSA Contribution Limit – Single $3,600 $3,650
HSA Contribution Limit – Family $7,200 $7,300
HSA Contribution Limit – 55+ Catch-Up Contribution $1,000 $1,000
Minimum HDHP Deductible - Single $1,400 $1,400
Minimum HDP Deductible – Family $2,800 $2,800
Plan Out-of-Pocket Maximum for HSA Eligibility – Single $7,000 $7,050
Plan Out-of-Pocket Maximum for HSA Eligibility - Family $14,000 $14,100
Plan Out-of-Pocket Maximum for ACA Compliance – Single $8,550 $8,700
Plan Out-of-Pocket Maximum for ACA Compliance – Family $17,100 $17,400

The information we’ve been given thus far is helpful, but we still need a lot of information to plan for 2022. As the year winds down, keep in touch with your OneDigital consultant to learn the 2022 limits, and how they can impact the benefit plans you offer and participate in.

To stay up to date on the latest in healthcare and employee benefits compliance, visit the OneDigital Compliance Confidence Blog, or contact your local Benefits Consultant for specific questions.

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