The IRS released the 2016 limits for health savings accounts (HSAs) and their accompanying high deductible health plans (HDHPs) effective for calendar year 2016. Some limits were adjusted from the 2015 amounts.
Annual Contribution Limitation
For calendar year 2016, the limitation on deductions for an individual with self-only coverage under a HDHP is $3,350. For calendar year 2016, the limitation on deductions for an individual with family coverage under a HDHP is $6,750.
High Deductible Health Plan
For calendar year 2016, a HDHP is defined as a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,550 for self-only coverage or $13,100 for family coverage.
Non-calendar year plans: In cases where the HDHP renewal date is after the beginning of the calendar year (i.e., a fiscal year HDHP), any required changes to the annual deductible or out-of-pocket maximum may be implemented as of the next renewal date.
Individuals who are age 55 or older and covered by a qualified HDHP may make additional catch-up contributions each year until they enroll in Medicare. The additional contribution, as outlined by the statute, is $1,000 for 2009 and thereafter.
The Pennsylvania Medical Society Insurance Agency (PMSIA) is your resource for practice and individual insurance needs. If you have any questions about HSAs, HDHPs, or other insurance needs, please call 1-866-441-2392, send an email to email@example.com, or visit www.pamedinsurance.com.