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This applies to all employers who offer a High Deductible Health Plan that is Health Savings Account (HSA) eligible.
Overview
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The Internal Revenue Service has announced the 2019 dollar limitations for Health Savings Accounts as well as underlying qualifying High Deductible Health Plans (available here). The maximum HSA contribution and the out of pocket maximum limits saw increases at both the family and individual levels. The minimum deductible for high deductible health plans for an individual and family stayed the same.
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| High Deductible Health Plan Policy Limits |
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2018 |
2019 |
| Minimum Deductible |
Individual |
$1,350 |
$1,350 |
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Family |
$2,700 |
$2,700 |
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Maximum Out of
Pocket Limit |
Individual |
$6,650 |
$6,750 |
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Family |
$13,300 |
$13,500 |
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| Health Savings Account Limits |
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2018 |
2019 |
| Maximum HSA Contribution |
Individual |
$3,450 |
$3,500 |
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Family |
$6,900*
*Transition relief allows for $6,900 contribution in 2018. For more details, see our blog here.
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$7,000 |
| Over Age 55 Catch-Up Contribution |
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$1,000 |
$1,000 |
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High Deductible Health Plan Policy Limits
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Any amount can be contributed to an HSA up to the maximum annual contribution, regardless of the actual deductible of the underlying HDHP plan. The HSA contribution rules assume that you will be enrolled on a high deductible health plan for 12 consecutive months.
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Embedded Deductibles on an HSA-Qualified HDHP
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Many qualified high deductible health plans have an aggregate family deductible so that if an employee covers any dependents on the plan, the family deductible applies and the individual deductible is not taken into consideration. However, there are some plans that have an embedded individual deductible such that if one member of the family meets the embedded individual deductible, then the plan coinsurance would start to pay once that individual deductible is met. In order for such a plan to be a qualified HDHP the embeded individual deductible must be at least the minimum family deductible outlined above. As an example, these types of plans would need to have an embedded individual deductible of $2,700 to remain HSA qualified in 2019.
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