Recently, the U.S. Treasury Department and Internal Revenue Service (IRS) released Revenue Procedure 2015- 30, announcing the 2016 maximum contribution levels for health savings accounts (HSAs) and the minimum deductible and maximum out-of-pocket (OOP) limits for HSA-qualified high deductible health plans (HDHPs). The IRS releases these numbers annually on or before June 1st for the upcoming calendar year. The following table lists the current 2015 amounts and the new 2016 amounts:
The limit on catch-up contributions, allowed for those with HSAs who are age 55 and older, remains at an additional $1,000 per year.
For plan years beginning on or after January 1, 2014 (or upon loss of grandfathered status, if later), the healthcare reform law applies an overall cost-sharing limit to all non-grandfathered group health plans, regardless of the plan’s size or funding (fully-insured or self-insured) arrangement. These OOP limits are different than those for HSA-qualified HDHPs. This overall OOP maximum cost-sharing limit on coinsurance, deductibles, copayments, and similar charges applies to all types of plans (including plans that are not HSA-qualified HDHPs). In rules published in February, HHS announced 2016 OOP limits of $6,850 for self-only coverage and $13,700 for other than self-only coverage.
If you have any questions related to HSAs or HDHPs, please contact your Conner Strong & Buckelew account representative toll free at 1-877-861-3220. For a complete list of Legislative Updates issued by Conner Strong & Buckelew, visit our online Resource Center.