On April 29, 2022, the IRS released Revenue Procedure 2022-24. This notice provides the 2023 adjusted inflation amounts for Health Savings Account (HSA) contribution limits, out-of-pocket limits, and minimum deductibles for High Deductible Health Plans (HDHP).
As we see the cost of living and other goods skyrocket due to inflation, the same applies to HSA contribution and HDHP health plan limits. In 2023, HSA participants will be able to contribute much more to their accounts. The increases for 2023 are significantly higher than any other year. We are seeing about a 5.5% increase compared to the 2022 limits, which is crazy considering last year it only rose by 1.4% from 2021.
Kevin Robertson, chief revenue officer at HSA Bank, mentioned that employers can use the 2023 limits during open enrollment season to encourage employees to contribute to their accounts or increase their contributions. He also stated that it may be a "catalyst for employers who don't already contribute to employees' HSAs to begin doing so, even if it's a nominal amount, a couple of hundred dollars or whatever."
We outlined the changes to expect from 2022 to 2023 in the table below.
*Catch-up Limit applies to HSA holders 55 or older. These participants can contribute an additional $1,000 to their HSAs (per individual). The catch-up contribution amount is the only one that stays fixed (not adjusted for inflation).
*Excepted Benefits are types of coverage not included in a traditional health insurance plan, such as vision or disability coverage.
Employers, it's never too early to prepare for the 2023 open enrollment season. If you have any questions regarding your account with Medcom, please feel free to reach out to our CDHP customer service team!