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HDHP, HSA and ACA Limits Increase for 2019

The Internal Revenue Service (IRS) released the revised limits for high deductible health plans and health savings accounts on May 10.

After the back and forth changes in the health savings accounts family annual limit for 2018 – see our updated post on the finalized 2018 limits - employers can rely on this recent IRS revenue procedure while planning for their upcoming benefit plan year.

Along with the 2019 adjusted HSA contribution limits, the IRS provided adjusted minimum deductible and maximum out-of-pocket expenses for qualified high-deductible health plans that individuals must be covered under to be eligible to contribute to an HSA.

The Department of Health and Human Services (HHS) released revised limits under the ACA. The Affordability Percentage, the required contribution percentage used to determine whether employer-sponsored health coverage is deemed “affordable” for purposes of the employer shared responsibility, increased to 9.86% for 2019. Additionally, the percentage used to determine the amount of household income that individuals eligible for premium tax credits must contribute toward the cost of Exchange coverage increased, ranging from 2.08% to 9.86%.

Lastly, HHS also released the revised ACA out-of-pocket limits for in-network essential health benefits for non-grandfathered plans. These cost-sharing limits have steadily been rising to be higher than HDHP limits. For 2019, the limit will be higher than the HDHP out-of-pocket limit by $1,150 for self-only coverage and by $2,300 for family coverage.

Listed below are the new limits for 2019, along with historical perspective. The contribution limits for the other tax-advantage accounts are projected as an announcement of these limits generally comes out in October.

Account Limits

2018

2019

Change

Health Care Flexible Spending Account (FSA)

$2,650 $2,700 Projected $50

Dependent Care Flexible Spending Account (FSA)

$5,000 $5,000
Projected
$0

Health Spending Accounts (HSA) –
 
High deductible health plan

Annual deductible minimums
 
Annual out-of-pocket maximums
(including deductibles, copayments, & coinsurance, but not premiums)

Self-only: $1,350
Family: $2,700
 
Self-only: $6,650
Family: $13,300
Self-only: $1,350
Family: $2,700
 
Self-only: $6,750
Family: $13,500
Self-only:
$0
Family:
$0
 
Self-only:
$100
Family:
$200

Health Spending Accounts (HSA) –

 
Maximum contribution
 
Catch-up contributions for HSA-eligible individuals who are age 55 or older (not subject to adjustment for inflation)

Self-only: $3,450
 
Family: $6,900
 
$1,000
Self-only: $3,500
 
Family: $7,000
 
$1,000
Self-only:
$50
 
Family:
$100
 
$0

Transportation Fringe Benefits

Parking
Mass transit

$260/mo
$260/mo
Projected
$265/mo
$265/mo
Projected
$5/mo
$5/mo

ACA Maximum Out-of-Pocket

Self-only: $7,350
Family: $14,700
Self-only: $7,900
Family: $15,800
Self-only:
$550
Family:
$1,100

 

ACA Affordability Percentage

2014

2015

2016

2017

2018

2019

9.5% 9.56% 9.66% 9.69% 9.56% 9.86%

 

DOWNLOAD THE INFOBRIEF: HDHP, HSA, and ACA Limits Increase for 2019

 
For more information about the ACA limits increase or if you have other compliance-related questions, reach out to your OneDigital representative today.

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