The Internal Revenue Service has announced the 2025 deductible, out-of-pocket, and contribution limits for Health Savings Accounts (HSA). Here they are:

Compared with 2024, the minimum deductible for people with single coverage is increasing by $50, from $1,600 to $1,650, and the minimum deductible for people with family coverage is increasing by $100, from $3,200 to $3,300. There’s an even bigger jump in the annual out-of-pocket limit: from $8,050 to $8,300 for people with single coverage and from $16,100 to $16,600 for people with family coverage. 

The good news is that the HSA contribution limits are also increasing for 2025. For those with single coverage, the new contribution amount will be $4,300, an increase of $150 compared with 2024. For those with family coverage, the contribution limit is increasing by $250 to $8,550. The catch-up contribution for account holders age 55 and older remains $1,000 per year and must be deposited into an account in the individual’s name. That means that married couples age 55 and older must set up separate accounts if they both want to take advantage of the catch-up contribution.

Lower Out-of-Pocket than Many Copay Plans

CMS has also announced the out-of-pocket limits for non-HSA-qualified ACA-metallic plans, and the in-network exposure remains significantly higher than for HSA plans:

As we’ve mentioned multiple times in the past, “High Deductible Health Plans” now provide more comprehensive coverage than traditional plans, so your clients should not be scared off by the somewhat misleading term.

It is worth pointing out, though, that, for the first time since the ACA was signed into law, the ACA out-of-pocket limit is actually decreasing in 2025, from $9,450 to $9,200 for people with single coverage and from $18,900 to $18,400 for people with family coverage. That is certainly good news for consumers, but it also means that we might see a corresponding increase in premiums, especially for individuals who currently have coverage with the highest allowed out-of-pocket limit.

The out-of-pocket limits for HSA-compatible plans and traditional plans with up-front copayments will be closer than they’ve been recently, which could increase the price difference between HSA and non-HSA plans slightly. Here’s a simplified breakdown:

• The OOP limit is increasing on HSA qualified plans, which should help to limit the 2025 price increase, at least a little.
• In contrast, the OOP limit is decreasing on copay plans, which may result in a slightly larger premium increase than if the limit had stayed the same.

Supplemental Coverage Considerations

Even with the slightly lower out-of-pocket maximum on copay plans, the fact is that the in-network exposure under most health plans is higher than most of our clients are comfortable with. That’s why they should consider supplementing their ACA health insurance policy with other products, like accident and critical illness policies, that can help to offset a significant portion of the deductible and other out-of-pocket exposure.

Be sure to visit the AHCP Carriers page to learn about the supplemental products we offer that could help reduce your clients’ costs in the event of an accident or serious illness.