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High Deductible Health Plans (HDHPs) and Health Savings Accounts (HSAs) Revised 2020 Limits

The Internal Revenue Service (IRS) released the 2020 cost-of-living revised limits for high deductible health plans (HDHPs) and health savings accounts (HSAs) on May 28, 2019.

The annual limit on HSA contributions increases by $50 for those with self-only coverage and $100 for those with family coverage next year. Below you’ll find the details:

High Deductible Health Plans (HDHPs)

Account Limits 2019 2020 Change
Annual deductible minimums • Self-only; $1,350
• Family; $2,700
• Self-only; $1,400
• Family; $2,800
• Self-only; $50
• Family $100
Annual out-of-pocket expenses (including deductibles, copayments, and coinsurance, but not premiums) • Self-only; $6,750
• Family $13,500
• Self-only: $6,900
• Family: $13,800
• Self-only: $150
• Family: $300
Health Savings Accounts (HSAs) Maximum Contributions • Self-only; $$3,500
• Family $7,000
• Self-only; $3,550
• Family $7,100
• Self-only; $50
• Family $100
Catch-up contributions for HSA eligible individuals who are age 55 or older (not subject to inflation adjustments) $1,000 $1,000 No change

Note that the increase in the HDHP out-of-pocket maximums does not match the increase to the HSA contribution limits so some individuals may have to pay more out-of-pocket expenses without the benefit of the HSA tax savings.

These limits are adjusted for increases in the cost of living annually and take effect in January. For HDHPs with non-calendar plan years, the adjusted limits for the calendar year in which the HDHP’s plan year begins can be applied for that entire plan year.

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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