Indexed Contribution Limits

2015 Indexed Contribution Limits for HDHP and HSA Plans

The Treasury Department and Internal Revenue Service released the new indexed amounts, adjusted for inflation, for High Deductible Health Plans (HDHPs) and Health Savings Accounts (HSAs).

To whom do these new inflated amounts apply?

These rates will apply to any employer offering an HSA and/or a qualified HDHP. Merely because a plan has high deductibles, will not in and of itself, make the plan an HDHP. In order for a plan to be considered a qualified HDHP, in addition to other requirements, the plan must satisfy minimum deductible and maximum out-of-pocket requirements.

What are the new inflated amounts?

For HSAs: The annual HSA contribution amount for individual coverage is $3,350 and $6,650 for family coverage.

For an HDHP: In order for a plan to be considered a qualified HDHP, for 2015, the minimum deductible cannot be less than $1,300 for an individual or $2,600 for a family. The maximum out-of-pocket cannot exceed $6,450 for an individual or $12,900 for a family.

When do these new inflated amounts go into effect?

The new inflated amounts will apply to calendar years starting January 1, 2015.

How do these new inflated amounts impact employers?

For any employer who currently offers an HSA and/or a qualified HDHP, employers must amend their plan documents and other marketing materials to reflect these new inflated amounts. Any employers who are considering adding an HSA and/or HDHP, should remember to build those plans keeping the above limits in mind.

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This material is being provided as an informational tool. It is recommended that plans consult with their own experts or counsel to review all applicable federal and state legal requirements that may apply to their group health plan. By providing this publication and any attachments, Covenant Services Group is not exercising discretionary authority over the plan and is not assuming a plan fiduciary role, nor is Covenant Services Group providing legal advice.