Quick Facts
- The Internal Revenue Service (IRS) updates High Deductible Health Plans (HDHP) and Health Savings Account (HSA) limits annually for inflation.
- In May 2022, the IRS released Revenue Procedure 2022-24 updating cost-sharing limits for HDHPs, maximum HSA contribution limits and the maximum amount that may be made available for an excepted benefit Health Reimbursement Arrangement (HRA) in 2023.
Overview
The IRS recently released Revenue Procedure 2022-24, which includes the 2023 inflation-adjusted amounts for HSAs, HDHPs and excepted benefit HRAs. These limits include the maximum HSA contribution limit, the minimum deductible amount for HDHPs, the maximum out-of-pocket expense limit for HDHPs and the maximum amount that may be made newly available for the plan year for an excepted benefit HRA. These limits vary based on whether an individual has self-only or family coverage under an HDHP. Limits for HSAs and HDHPs are effective January 1, 2023.
The HSA annual contribution limit for an individual with self-only HDHP coverage will increase by $200 to $3,850 for 2023. The annual contribution limit for an individual with family HDHP coverage will increase by $450 to $7,750 for 2023.
The minimum required deductible amounts are increasing for HSA-compatible HDHPs, from $1,400 (self-only coverage) and $2,800 (family coverage) in 2022 to $1,500 (self-only coverage) and $3,000 (family coverage) in 2023. Note the deductible does not apply to certain preventive care services. Plans that embed the deductible for a qualified HDHP must set the embedded limit to at least the family HDHP minimum deductible amount, which remains at $3,000 next year. Out-of-pocket maximum limits for HDHPs will increase to $7,500 for self-only plans and $15,000 for family plans.
For plan years beginning in 2023, the maximum amount that may be made newly available for an excepted benefit HRA is $1,950, an increase from $1,800 in 2022.
The following table compares the 2022 and 2023 limits. The catch-up contribution limit of $1,000 that applies to HSA-eligible individuals who are age 55 or older is not adjusted for inflation and stays the same from year to year.
| 2022 | 2023 | |||
|---|---|---|---|---|
| Limit Type | Self-Only | Family | Self-Only | Family |
| HSA Maximum Contribution | $3,650 | $7,300 | $3,850 | $7,750 |
| HDHP Minimum Deductible | $1,400 | $2,800 | $1,500 | $3,000 |
| HDHP Maximum Out-of-Pocket | $7,050 | $14,100 | $7,500 | $15,000 |
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EPIC offers this material for general information only. EPIC does not intend this material to be, nor may any person receiving this information construe or rely on this material as, tax or legal advice. The matters addressed in this document and any related discussions or correspondence should be reviewed and discussed with legal counsel prior to acting or relying on these materials.
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