June 07, 2023
On May 16, 2023, the Internal Revenue Service (IRS) issued Revenue Procedure 2023-23, which provides inflation-adjusted amounts for health savings accounts (HSAs) paired with high-deductible health plans (HDHPs). The Department of Health and Human Services (HHS) and Centers for Medicare and Medicaid Services (CMS) previously announced inflation-adjusted out-of-pocket maximums for non-HSA/HDHP group health plans in December 2022. We summarize these updates below.
Key Action
Consider 2024 HSA/HDHP and excepted benefits HRA limits when finalizing 2024 plan designs.
2024 Contributions and Deductibles
Effective for 2024, the annual contribution limits and minimum annual deductibles are as follows (with information for previous years):
| HSAs – Maximum Annual Contribution | ||
|---|---|---|
| Self-Only | Family | |
| 2024 | $4,150 (+$300) |
$8,300 (+$550) |
| 2023 | $3,850 |
$7,750 |
| 2022 | $3,650 | $7,300 |
| 2021 | $3,600 | $7,200 |
| 2020 | $3,550 | $7,100 |
| 2019 | $3,500 | $7,000 |
| 2018 | $3,450 | $6,900 |
| 2017 | $3,400 | $6,750 |
| 2016 | $3,350 | $6,650 |
| 2015 | $3,350 | $6,650 |
| 2014 | $3,300 | $6,550 |
| HDHPs – Minimum Annual Deductible | ||
|---|---|---|
| Self-Only | Family | |
| 2024 | $1,600 (+$100) |
$3,200 (+$200) |
| 2023 | $1,500 |
$3,000 |
| 2022 | $1,400 | $2,800 |
| 2021 | $1,400 | $2,800 |
| 2020 | $1,400 | $2,800 |
| 2019 | $1,350 | $2,700 |
| 2018 | $1,350 | $2,700 |
| 2017 | $1,300 | $2,600 |
| 2016 | $1,300 | $2,600 |
| 2015 | $1,300 | $2,600 |
| 2014 | $1,250 | $2,500 |
For 2023, the annual limit on HSA catch-up contributions age 55 and older remains $1,000. This amount is fixed by statute and is not subject to cost-of-living adjustments.
Out-of-Pocket Maximums
HHS and CMS previously confirmed the maximum annual limitation on cost sharing that non-HSA/HDHP group health plans can impose for the 2024 plan year in the Notice of Benefit and Payment Parameters for the 2024 Proposed Rule. IRS Revenue Procedure 2023-23 confirms the 2024 out-of-pocket maximums for HSA/HDHP plans. The 2024 maximums (with information for previous years) can be found below:
| Out-of-Pocket Maximums by Year | ||||
|---|---|---|---|---|
| HSA/HDHPs | All Other Group Health Plans | |||
| Self-Only | Family | Self-Only | Family | |
| 2024 |
$8,050 (+$550) |
$16,100 (+$1,100) |
$9,450* |
$18,900 (+$700) |
| 2023 | $7,500 |
$15,000 |
$9,100* |
$18,200 |
| 2022 | $7,050 | $14,100 | $8,700* |
$17,400 |
| 2021 | $7,000 | $14,000 | $8,550* | $17,100 |
| 2020 | $6,900 | $13,800 | $8,150* | $16,300 |
| 2019 | $6,750 | $13,500 | $7,900* | $15,800 |
| 2018 | $6,650 | $13,300 | $7,350* | $14,700 |
| 2017 | $6,550 | $13,300 | $7,150* | $14,300 |
| 2016 | $6,550 | $13,100 | $6,850* | $13,700 |
| 2015 | $6,450 | $12,900 | $6,600 | $13,200 |
| 2014 | $6,350 | $12,700 | $6,350 | $12,700 |
* Embed self-only out-of-pocket maximum for family coverage
Excepted Benefits Health Reimbursement Arrangements (HRAs)
Revenue Procedure 2023-23 also includes the cost-of-living maximum annual amount that may be made newly available for excepted benefits HRAs. Effective for plan years beginning in 2024, the maximum annual amount that employers may contribute is $2,100 (+$150 from 2023).
Next Steps
Employer plan sponsors should consider these inflation-adjusted limits when planning for the 2024 plan year.
Resources
- IRS Revenue Procedure 2023-23
- HHS – Fact Sheet: Premium Adjusted Percentage, Maximum Annual Limitation on Cost Sharing, Reduced Maximum Annual Limitation on Cost Sharing, and Required Contribution Percentage for the 2024 Benefit Year
If you have questions, comments, or concerns about these or other regulatory and compliance issues, please contact us.
We provide this material for informational purposes only; it is not a substitute for legal advice.
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