Recently, the IRS released Rev. Proc. 2023-23, which outlines the adjusted amounts for health saving accounts (HSAs) and high deductible health plans (HDHPs) for the 2024 calendar year. The new limits are summarized in the table below.
|Annual HSA Contribution Limit |
(employer and employee)
|Self-only: $4,150 |
|Self-only: $3,850 |
|Self-only: +$300 |
|HSA Catch-Up Contributions|
(age 55 or older)
|Minimum Annual HDHP Deductible||Self-only: $1,600 |
|Self-only: $1,500 |
|Self-only: +$100 |
|Maximum Out-of-Pocket for HDHP |
(deductibles, co-pays & other amounts except premiums)
|Self-only: $8,050 |
|Self-only: $7,500 |
|Self-only: +$550 |
As a reminder, for an HDHP to be qualified for purposes of HSA-eligibility, it must not pay benefits (other than for preventative care) before the minimum required deductible is met for the level of coverage in which enrolled. Importantly, plans that provide family coverage with an embedded deductible* must not pay benefits until the minimum required family deductible of $3,200 is met. This means that plans with an embedded deductible must have a self-only deductible that is at least the $3,200 minimum family deductible.
In addition, note that temporary relief continues to allow HDHPs to provide free or low-cost telehealth services prior to meeting the HDHP minimum deductible without impacting HSA eligibility. This relief is currently effective through plan years beginning before January 1, 2025. See our blog, Extension Continued for Telehealth/HSA Relief, for more information.
Next Steps for Employers
As employers prepare for the 2024 plan year, they should ensure any plan materials and participant communications reflect the new limits. In addition, with the increase in the minimum annual deductible, employers should make sure their qualified HDHPs meet the new deductible requirements.
*An embedded deductible allows the plan to pay coinsurance for an individual on family coverage once that individual hits the self-only deductible limit (and once family deductible is met, coinsurance kicks in for all covered family members).
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