The Internal Revenue Service has announced the 2018 deductible, out-of-pocket, and contribution limits for Health Savings Accounts. Here they are:

Minimum Deductible Out-of-Pocket Limit Contribution Limit
Single Coverage $1,350 $6,650 $3,450
Family Coverage $2,700 $13,300 $6,900

Compared with 2017, the minimum deductible will increase by $50 for people with single coverage and $100 for those with family coverage; the maximum out-of-pocket will increase by $100 for people with self-only coverage and $200 for those with family coverage; and the contribution limit will increase by $50 for self-only plans and $150 for family plans.

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 must set up separate accounts if they both want to take advantage of the catch-up contribution.

Possible Changes to Health Savings Accounts

This update wouldn’t be complete without pointing out that the HSA rules could soon be changing. The American Health Care Act, as well as other bills like the Health Savings Act of 2017, call for a number of changes to HSAs. Here are a few of the big proposals:

  • Increase the maximum contribution amount to the deductible and out-of-pocket limit
  • Allow married couples to make catch-up contributions to the same account
  • Allow people with Medicare Part A only to continue to make contributions to a Health Savings Account
  • Allow HSA funds to be used for over-the-counter drugs
  • Reduce the penalty for ineligible expenses from 20% back to 10%
  • Change the name “High Deductible Health Plan” to “HSA Qualified Health Plan”

There are several additional proposals in the AHCA and other bills that would make HSAs more user-friendly and permit more people to participate in a Health Savings Account.

Are you selling HSA-qualified plans?

At AHCP, we continue to believe that HSAs will be a big part of the solution going forward. They’ve grown exponentially over the last decade, both before the Affordable Care Act and during the ACA years. Because every Republican replacement plan would further expand Health Savings Accounts, there’s no reason to believe the HSAs won’t continue to be a popular and cost-effective option for your clients.

Of course, HSA-qualified plans do require more cost sharing than traditional copay options, so that means that selling the health plan alone is not enough. As we’ve explained in other blog posts, supplemental products like accident and critical illness plans can help your clients preserve their HSA funds by offsetting a portion of the deductible risk; services like telemedicine can help replace some of the missing copayments and give people access by phone to health care providers; and the HSA itself can provide your clients with an immediate tax break on their contributions while they save for a rainy day.

For more information on Health Savings Accounts or the products you should sell alongside an HSA-qualified plan, contact AHCP today.