Recently, the IRS released Rev. Proc. 2024-25, which outlines the adjusted amounts for health saving accounts (HSAs) and high deductible health plans (HDHPs) for the 2025 calendar year. The new limits are summarized in the table below.
| 2025 | 2024 | Change | |
| Annual HSA Contribution Limit (employer and employee) | Self-only: $4,300 Family: $8,550 | Self-only: $4,150 Family: $8,300 | Self-only: +$150 Family: +$250 |
| HSA Catch-Up Contribution Limit (age 55 or older) | $1,000 | $1,000 | No change |
| Minimum Annual HDHP Deductible | Self-only: $1,650 Family: $3,300 | Self-only: $1,600 Family: $3,200 | Self-only: +$50 Family: +$100 |
| Maximum Out-of-Pocket Limit for HDHP (deductibles, co-pays & other amounts except premiums) | Self-only: $8,300 Family: $16,600 | Self-only: $8,050 Family: $16,100 | Self-only: +$150 Family: +$500 |
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 a participant is enrolled. Importantly, plans that provide family coverage with an embedded deductible* must not pay benefits until the minimum required family deductible of $3,300 is met. This means that plans with an embedded deductible must have a self-only deductible that is at least $3,300.
ACA Maximum Out-of-Pocket
The ACA’s out-of-pocket limits for in-network essential health benefits have also been announced and have decreased for 2025 (applicable for non-grandfathered group health plans).
| 2025 | 2024 | Change | |
| ACA Maximum Out-of-Pocket Limit | Self-only: $9,200 Family: $18,400 | Self-only: $9,450 Family: $18,900 | Self-only: -$250 Family: -$500 |
Note that all non-grandfathered group health plans must contain an embedded individual out-of-pocket limit within family coverage if the family out-of-pocket limit is above $9,200 (for 2025). This is because all non-grandfathered plans (both HDHP and non-HDHP) must cap the out-of-pocket spend at $9,200 for any covered person.
Next Steps for Employers
As employers prepare for the 2025 plan year, they should ensure any plan materials and participant communications reflect the new limits. In addition, with the increase in the HDHP 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 the family deductible is met, coinsurance kicks in for all covered family members).
Additional Resources
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