On May 4, 2015, the Internal Revenue Service (IRS) issued Revenue Procedure 2015-30, which provides the 2016 inflation adjusted amounts for HSAs. Included in this update are contribution, maximum, and minimum limits for HSAs in 2016.
2016 Minimum Deductibles for HSA Compliant HDHPs
- Individual – $1,300 (2015 limit is $1,300)
- Family – $2,600 (2015 limit is $2,600)
2016 Maximum Out-of-Pockets for HSA Compliant HDHPs
- Individual – $6,550(2015 limit is $6,450)
- Family – $13,100 (2015 limit is $12,900)
2016 Maximum Annual Contribution Levels
- Individual – $3,350 (2015 maxixmum is $3,350)
- Family – $6,750 (2015 maxixmum is $6,650)
- “Catch up” amount for 55+ account holders is $1,000 (unchanged)
Guidance for designing an HSA-compliant health plan that has 4th quarter deductible carryover and/or individual “embedded” deductibles:
4th quarter carryover
All small group HSA-compliant HDHPs are currently designed to include carryover. If a large group chooses to include the benefit of 4th quarter carryover in their HDHP design, the minimum annual deductible must be increased by 25 percent to accommodate the extended deductible period. This means that in 2016, plans with 4th quarter carryover must have a deductible of at least $1,625 for individual coverage and $3,250 for family coverage.
HSA-compliant HDHP with an embedded deductible
It is permissible to have an individual member (embedded) deductible on family policies as long as the individual deductible is not less than the minimum family deductible amount established by HSA law ($2,600 in 2016).
4th quarter carryover and an embedded deductible
If a group wants both an individual “embedded” deductible and 4th quarter deductible carryover, the minimum individual deductible required is $3,250 ($2,600 based on the embedded deductible rule, plus an additional 25 percent based on the fourth quarter deductible carryover rule).
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