What are the 2023 Limits for HSAs and High-Deductible Health Plans?
IRS Announces increase for Health Savings Account Contribution Limits
On April 29, the IRS released the HSA contribution limits for the 2023 calendar year, along with the minimum and maximum out-of-pocket expenses for High Deductible Health Plans (HDHPs). HSAs must be paired with a qualified HDHP.
The annual inflation-adjusted limit on HSA contributions for self-only coverage in 2023 is $3,850– up from $3,650 in 2022. The HSA contribution limit for family coverage in 2023 is $7,750– up from $7,300 in 2022. These increases of $200 and $450, respectively, reflect a response to the country’s recently spike in inflation rates.
The HDHP minimum deductible for self-only coverage increases from $1,400 in 2022 to $1,500 in 2023. For family deductibles, the minimum will be $3,000 in 2023 compared to $2,800 in 2022.
The HDHP maximum out-of-pocket amounts, which includes deductibles, co-pays, and other amounts, but not insurance premiums, has been adjusted to $7,500 for self only and $15,000 for family coverage in 2023. This is compared to a 2022 rate of $7,050 for self-only plans and $14,100 for families.
Contribution and Out-of-Pocket Limits for Health Savings Accounts and High-Deductible Health Plans:
| 2023 | 2022 | Change | |
| HSA Contribution Limit [Employer & Employee] | Self-only: $3,850 Family: $7,750 |
Self-only: $3,650 Family: $7,300 |
Self-only: +$200 Family: +$450 |
| HSA Catch-up Contributions [Age 55+] | $1,000 | $1,000 | No change (set by statute) |
| HDHP Minimum Deductibles | Self-only: $1,500 Family: $3,000 |
Self-only: $1,400 Family: $2,800 |
Self-only: +$100 Family: +$200 |
| HDHP Maximum Out-of-Pocket Amounts | Self-only: $7,500 Family: $15,000 |
Self-only: $7,050 Family: $14,100 |
Self-only: +$450 Family: +$900 |
Planning for 2023
The new 2023 HSA limits should be used by employers and employees alike to begin mapping out their plans for Open Enrollment Season and beyond.
Employees should review these increased HSA contributions limits and consider raising their current contribution rate if they can. With an HSA, participants can change their contribution amount at any time during the year.
Employers should begin updating their payroll and benefit admin systems to reflect the upcoming year’s cost-of-living adjustments.
In addition, employers should consider the opportunity to increase their contributions to an employee’s HSA. When employer contributions are higher, employees’ engagement with their account tends to increase as well.
Interested in learning more about a Difference Card HSA?
With a personal savings account known as a Health Savings Account (HSA), employees can save pre-tax dollars for future or current healthcare expenses. Employees can use these funds for healthcare expenses.
Learn more: How to Contribute to an HSA?