Let the Planning Begin: IRS Releases HSA and HDHP Limits for 2016

Chris Allesee

For those that like to get a jump on planning for next year, the IRS just announced the new 2016 contribution limits for a health savings account (“HSA”), as well as the 2016 minimum deductible and maximum out-of-pocket limits associated with a high deductible health plan (“HDHP”). The IRS did not change several of the numbers, as you will see in the following comparison: 

  2015 HSA Contribution Limits  2016 HSA Contribution Limits 
1.  Self-Only                    $ 3,350                 $  3,350
 2.  Family                   $ 6,650                 $  6,750
   2015 Minimum HDHP Deductible  2016 HDHP Minimum Deductible
 1.  Self-Only                   $ 1,300                $  1,300
 2.  Family                   $ 2,600                $  2,600
   2015 HDHP Max Out-of-Pocket  2016 HDHP Max Out-of-Pocket
 1.  Self-Only                  $  6,450                $  6,550
 2.  Family                  $12,900                $13,100

Keep in mind that HHS already released its 2016 maximum out-of-pocket limits ($6,850/$13,700), and will also require embedded out-of-pocket maximums beginning with the 2016 plan year. Because the IRS’s out-of-pocket maximums for an HDHP are lower than the HHS maximums, HDHPs must use the lower IRS limit. However, the HHS rule on embedding out-of-pocket maximums still applies to HDHPs. The interplay between the rules can be a little confusing, so consult with your providers now to make sure your coverage for 2016 complies with both the HHS and IRS guidance.