The IRS has announced increases to the Health Savings Account (HSA) contribution limits for 2024. These adjustments are based on the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) and reflect the impact of inflation on healthcare costs. Despite a downward trend in inflation, last year saw higher-than-normal rates (around 7%-8%), resulting in significant increases to the HSA contribution limits.
For 2024, the individual coverage HSA contribution limit will increase by $300, reaching $4,150. For family coverage (employee plus at least one other covered individual), the HSA contribution limit will increase by $550, reaching $8,300. It's important to note that the catch-up contribution limit for individuals aged 55 and above remains fixed at $1,000 and does not adjust for inflation.
In addition to the HSA contribution limits, the IRS update also includes the minimum deductible and out-of-pocket maximums required for a plan to qualify as a high deductible health plan (HDHP) and allow individuals to make or receive HSA contributions.
For 2024, the minimum deductible for individual coverage will increase by $100, reaching $1,600. The minimum deductible for family coverage will increase by $200, reaching $3,200. The maximum out-of-pocket limit for individual coverage will increase by $550, reaching $8,050. For family coverage, the maximum out-of-pocket limit will increase by $1,100, reaching $16,100.
Contact your Boutwell Fay attorney for more information about this topic or email us at attorneys@boutwellfay.com.