Inflation Adjustments for 2023 HSAs and HDHPs

The IRS has announced the inflation adjustments for 2023 Health Savings Accounts (HSA) and High Deductible Health Plans (HDHP). These adjustments include maximum HSA contributions, minimum deductible amounts and maximum out-of-pocket (OOP) limits. See below for further information.

The following adjustments apply to the calendar year 2023:

Contributions to an HSA:

• For the 2023 calendar year, the annual limitation on contributions to an HSA under §223(b)(2)(A) for an individual with self-only coverage under an HDHP is $3,850.

• The annual limitation on contributions to an HSA under §223(b)(2)(B) for an individual with family coverage under an HDHP is $7,750.

Additional contribution amount (individuals age 55 and older):

• The catch-up contribution limit to an HSA under §223(b)(3)(B) is $1,000.

• There is no change from 2022.

High Deductible Health Plans:

• An HDHP is defined under §223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,500 for self-only coverage or $3,000 for family coverage.

• The annual out-of-pocket expenses (deductibles, copayments and other amounts, but not premiums) do not exceed $7,500 for self-only coverage or $15,000 for family coverage.

Please note that the HDHP limits on out-of-pocket expenses and the maximum out-of-pocket limits under the Affordable Care Act (“ACA”) are NOT the same. The maximum out-of-pocket limits for 2023 are $9,100 for self-only coverage and $18,200 for other than self-only coverage. 

Review the IRS revenue procedure here and please reach out with any questions, we’re happy to assist!