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Employers: Take Note of Changes to HDHPs, HSAs, and HRAs

Your employees utilize a High Deductible Healthcare Plan because it helps them to maintain lower premiums. Plus, a Health Savings Account or Health Reimbursement Arrangement helps them to manage the out-of-pocket expenses associated with these types of healthcare plans. But because the cost of living does change over time, these plans would lose their appeal and usefulness if we did not occasionally adjust certain limits with regard to them.

That’s exactly what the IRS has done, with regard to maximum out of pocket limits and minimum deductibles on HDHPs for next year. And likewise, the contribution limits for HRAs and HSAs will rise slightly in 2023.

Here’s what will change with regard to HDHPs:

  • Individual coverage minimum deductibles will rise from $1,400 this year to $1,500 next year
  • Family coverage minimum deductibles will rise from $2,800 this year to $3,000 next year
  • Out of pocket maximums for individuals will rise from $7,050 this year to $7,500 next year
  • Out of pocket maximums for families will rise from $14,100 to $15,000 next year

As for HSAs, the maximum annual contribution will change as follows:

  • For individuals, the maximum contribution is $3,650 this year and $3,850 next year
  • For families, the maximum contribution is $7,300 this year and $7,750 next year

The maximum catch-up contribution for those aged 55 and older will remain at $1,000 per year, because that limit is not subject to a cost of living adjustment.

And for HRAs, the maximum annual contribution limit will change as follows: The current limit of $1,800 for 2022 will rise to $1,950 in 2023.

Update your payroll and plan administration systems now, so that you can communicate these changes to plan participants correctly and according to regulations later this year. Materials such as open enrollment notices and summary plan descriptions should reflect the new limits as appropriate.

Call our office if you have any questions about the new limits, and we will help you access the information that pertains to your situation.

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