On May 10, 2020, the IRS released Revenue Procedure 2021-25 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2022.
Eligible individuals with self-only HDHP coverage will be able to contribute $3,650 to their HSAs for 2022, up from $3,600 for 2021. Eligible individuals with family HDHP coverage will be able to contribute $7,300 to their HSAs for 2022, up from $7,200 for 2021. Individuals who are age 55 or older are permitted to make an additional $1,000 “catch-up” contribution to their HSAs.
The minimum deductible amount for HDHPs remains the same for 2022 plan years ($1,400 for self-only coverage and $2,800 for family coverage). However, the HDHP maximum out-of-pocket expense limit increases to $7,050 for self-only coverage and $14,100 for family coverage.
|
Type of Limit |
2021 |
2022 |
Change |
|
|
HSA Contribution Limit |
Self-only |
$3,600 |
$3,650 |
Up $50 |
|
Family |
$7,200 |
$7,300 |
Up $100 |
|
|
HSA Catch-up Contributions |
Age 55 or older |
$1,000 |
$1,000 |
No change |
|
HDHP Minimum Deductible |
Self-only |
$1,400 |
$1,400 |
No change |
|
Family |
$2,800 |
$2,800 |
No change |
|
|
HDHP Maximum Out-of-pocket |
Self-only |
$7,000 |
$7,050 |
Up $50 |
|
Family |
$14,000 |
$14,100 |
Up $100 |
|
ACA's Limits Differ
There are two sets of limits on out-of-pocket expenses for health plans, determined annually by federal agencies, which can be a source of confusion. The Department of Health and Human Services (HHS) establishes annual out-of-pocket or cost-sharing limits under the ACA for essential health benefits covered under an ACA-compliant plan, excluding grandfathered plans. The HHS's annual out-of-pocket limits are higher than those set by the IRS, but to qualify as an HSA-compatible HDHP, a plan must not exceed the IRS's lower out-of-pocket maximums.
Below is a comparison of the two sets of limits:
|
|
|
2021 |
2022 |
Change |
|
Out-of-pocket limits for ACA-compliant plans (HHS) |
Self-only |
$8,550 |
$8,700 |
$150 |
|
Family |
$17,100 |
$17,400 |
$300 |
|
|
Out-of-pocket limits for HSA-qualified HDHPs (IRS) |
Self-only |
$7,000 |
$7,050 |
$50 |
|
Family |
$14,000 |
$14,100 |
$100 |
Excepted Benefit HRA Limit Unchanged
IRS Revenue Procedure 2021-25 also states that the maximum amount that employers may contribute for excepted benefit health reimbursement arrangements (excepted benefit HRAs) for plans years beginning in 2022 will remain at $1,800. Employers use excepted benefit HRAs to help cover the cost of employees' vision, dental, or short-term, limited-duration insurance plan premiums.