IRS Announces 2013 Cost-of-Living Changes to HSA Contribution Limits and HDHP Out-of-Pocket Maximums

Posted November 29, 2012 Company News

In 2013, individuals may incur a slightly greater proportion of out-of-pocket expenses when they utilize Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs). This is due to the latest allowable limits released by the IRS, which shows a growing disparity between the rate of increase for HSA contribution limits versus the rate increases for HDHP minimum annual deductibles and out-of-pocket maximums. The specific details are as follows:

  • HSA Contribution Limits – The IRS has set the 2013 annual HSA contribution limit for an individual with single HDHP coverage is $3,250. Correspondingly, the limit for family HDHP coverage is $6,450. These 2013 HSA contribution limits represent increases of $150 and $200, respectively, from 2012 and more than double the increases from 2011 ($50 and $100 increases for single and family HDHP coverage).
  • HDHP Minimum Required Annual Deductibles – The 2013 HDHP minimum deductibles are $1,250 for single coverage and $2,500 for family coverage. The new amounts reflect $50 and $100 dollar increases from one year ago. Two years ago, there was no change from 2011 to 2012.
  • HDHP Out-of-Pocket Maximums – The 2013 HDHP out-of-pocket maximum for an individual with single coverage is $6,250, while the out-ofpocket amount for family coverage is $12,500. The new maximum forindividual coverage is a $200 increase over 2012 figures, while the new maximum for family coverage is a $400 increase. The increases for out-ofpocket maximums were half these amounts from 2011 to 2012 ($100 and $200 respectively).

These increased limits will of course take effect with plan start dates beginning January 1, 2013.

There is no change to the “Over 55 HSA Catch-up Contribution” for the third consecutive year. This amount is still $1,000.

 

Rev. Proc. 2012-26

Available at http://www.irs.gov/pub/irs-drop/rp-12-26.pdf

 

Please note that the information contained in this document is designed to provide authoritative and accurate information, in regard to the subject matter covered. However, it is not provided as legal or tax advice and no representation is made as to the sufficiency for your specific company’s needs. This document should be reviewed by your legal counsel or tax consultant before use.

Additionally, the messages and content within the Pittsburgh Health Care Reform group do not reflect the advisory services of Henderson Brothers, Inc.


 

Contributing EXPERT: Shari Herrle

 

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