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May 7, 2015

2016 Minimums and Maximums for Health Savings Accounts and High-Deductible Health Plans

The Internal Revenue Service (IRS) has released Revenue Procedure 2015-30,* which announces inflation-adjusted amounts for 2016 for the maximum annual contribution to Health Savings Accounts (HSAs) and the maximum out-of-pocket expense for High-Deductible Health Plans (HDHPs) for individual and family coverage. The IRS calculates the annual adjustments using the 12-month period ending March 31.

The 2016 numbers are shown in the table below with notes about how those numbers compare to the 2015 numbers.

2016 Minimums and Maximums for HSAs1 and HDHPs
  Individual Coverage Family Coverage
Maximum Annual HSA Contribution2 $3,350
  from 2015)
  (up $100 from
  $6,650 for 2015 )
Minimum HDHP Deductible $1,300
  from 2015)
  from 2015)
Maximum HDHP Out-of-Pocket Expense3 $6,550
  (up $100 from
  $6,450 for 2015)
  (up $200 from
  $12,900 for 2015)

1 HSAs, established by the Medicare Modernization Act (MMA) as of January 1, 2004, allow individuals or employers to contribute to an HSA as long as the individual is covered under an HDHP.

2 Individuals age 55 or over can contribute an additional $1,000 to their HSAs.

3 The out-of-pocket expense does not include premiums.

Implications for Plan Sponsors

Before next year, plan sponsors that offer HDHPs with HSAs will need to revise their plan design and documents to reflect the 2016 amounts.

Plan sponsors interested in exploring an HSA should contact their Sibson  consultant to determine whether that course of action is right for them.

●  ●  ●

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.


* Revenue Procedure 2015-30, which will be published in Internal Revenue Bulletin 2015-20 on May 18, 2015, is available on the IRS website. (Return to the Capital Checkup.)