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Limits Regarding HDHPs, HSAs, and HRAs Set to Change Next Year

You enrolled in a High Deductible Healthcare Plan (HDHP) because it helps you to achieve lower monthly premiums. In addition, a Health Savings Account (HSA) or Health Reimbursement Arrangement (HRA) helps you to manage the out-of-pocket expenses associated with these types of healthcare plans. However, changes in the cost of living would render these types of plans and accounts much less useful if certain limits were not occasionally adjusted.

That’s the reasoning behind certain changes recently released by the IRS.

First, let’s review how minimum deductibles for HDHPs will change in 2023:

  • The minimum deductible for individual coverage will rise from $1,400 in 2022 to $1,500 in 2023
  • The minimum deductible for family coverage will rise from $2,800 in 2022 to $3,000 in 2023

Maximum annual out of pocket limits will change, too:

  • For individuals, the maximum of $7,050 will climb to $7,500 next year
  • For families, the maximum of $14,100 will climb to $15,000 next year

Yes, all of those changes indicate a bit more spending on your healthcare plan next year. But in response, the IRS has also changed the annual contribution limits to HSAs and HRAs accordingly:

  • For individuals, the HSA contribution limit will rise from $3,650 this year to $3,850 next year
  • For families, the HSA contribution limit will rise from $7,300 this year to $7,750 next year
  • For HRAs, the contribution limit of $1,800 will rise to $1,950 next year

As for catch-up contributions, for those aged 55 and older, that limit remains at $1,000 per year.

If you have questions about your healthcare plan, HSA, or HSA, do call us to review your options. We can help you learn more about these plans and how they can benefit you.

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