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May 18, 2009
2010 Minimums and Maximums for Health Savings Accounts Plans and High-Deductible Health Plans
On May 14, 2009, the Internal Revenue Service (IRS) released Revenue Procedure 2009-29,1 which announced various inflation-adjusted amounts for 2010 for Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs). The IRS calculates the annual adjustments using the 12-month period ending March 31.
The new numbers are shown in the chart below.
| 2010 Minimums and Maximums for HSAs* and HDHPs | ||
|---|---|---|
| Individual Coverage | Family Coverage | |
| Maximum Annual HSA Contribution** |
$3,050 (up $50 from $3,000 in 2009) |
$6,150 (up $200 from $5,950 in 2009) |
| Minimum HDHP Deductible | $1,200 (up $50 from $1,150 in 2009) |
$2,400 (up $100 from $2,300 in 2009) |
| Maximum HDHP Deductible | None | None |
| Maximum HDHP Out-of-Pocket Expense*** |
$5,950 (up $150 from $5,800 in 2009) |
$11,900 (up $300 from $11,600 in 2009) |
|
||
Implications for Plan Sponsors
Enrollment in HDHPs with HSAs has been steadily growing since HSAs were authorized beginning in January 2004. The most recent annual study of HSA/HDHP enrollment by America's Health Insurance Plans (AHIP), published on May 13, 2009, found that as of January 2009, about 8.0 million Americans were covered by HSAs with HDHPs.2 This is an increase from 6.1 million one year earlier, from 4.5 million in January 2007, from 3.2 million in January 2006 and from 1.0 million in March 2005.
According to the AHIP study, most of the growth in HSA/HDHP coverage from 2008 to 2009 was in the large-group market,3 where 1 million additional covered lives were added to produce a total of 3.7 million individuals with HSA/HDHP coverage. The individual market HSA/HDHP coverage held fairly steady, with 1.8 million individuals covered. The remaining individuals, 2.4 million, were in the small-group market.4
Plan sponsors interested in exploring the benefits of an HSA should contact their Sibson consultant to determine what course of action is right for them.
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As with all issues involving the interpretation or application of laws, health plan sponsors should rely on their legal counsel for authoritative advice on HDHPs and HSAs. Sibson Consulting can be retained to work with plan sponsors and their attorneys on compliance issues related to HDHPs and/or HSAs.
- 1
- Revenue Procedure 2009-29, which was published on May 14, 2009, is available on the IRS Web site http://www.irs.gov/pub/irs-drop/rp-09-29.pdf. (Click on the following text to return to the Capital Checkup.)
- 2
- The study is available on the AHIP Web site. (Click on the following text to return to the Capital Checkup.)
- 3
- The AHIP study did not define "large-group market." (Click on the following text to return to the Capital Checkup.)
- 4
- The AHIP study generally defined small-group coverage as "coverage through employers with 50 or fewer employees." (Click on the following text to return to the Capital Checkup.)
Capital Checkup is Sibson Consulting's periodic electronic newsletter summarizing activity in Washington with respect to health care and related subjects. Capital Checkup is for informational purposes only. It is not intended to provide guidance on current laws or pending legislation. On all issues involving the interpretation or application of laws and regulations, plan sponsors should rely on their attorneys for legal advice.