Government control of health care (a precursor to a single payer system) continues to manifest itself with constant dictates from bureaucrats in Washington. . The newest and latest message from the swamp is “we’ve placed a new limit on what you can save tax free towards your personal healthcare……………….” Our in-box receives numerous daily updates like the one below:
Inflation-Adjusted Contribution Limits and HDHP Amounts to Increase
The IRS has announced the 2020 inflation-adjusted amounts for Health Savings Accounts (HSAs) as determined under the Internal Revenue Code.
Annual Contribution Limitation
For calendar year 2020, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,550 (up from $3,500 for 2019). The annual limitation on deductions for an individual with family coverage under a high deductible health plan is $7,100 (up from $7,000 for 2019).
High Deductible Health Plan Amounts
For calendar year 2020, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage, and annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) that do not exceed $6,900 for self-only coverage or $13,800 for family coverage.
HHS Issues Key Rule for 2020
A new rule from the U.S. Department of Health and Human Services (HHS) addresses, among other things, the requirement under the Affordable Care Act that non-grandfathered group health plans limit annual out-of-pocket cost-sharing for coverage of essential health benefits under the plan. Under the rule, these out-of-pocket expenses may not exceed $8,150 for self-only coverage or $16,300 for family coverage in 2020.
SUMMARY
HSA/HDHP Limits 2020 2019
Maximum HSA Contribution – Single $3,550 $3,500
Maximum HSA Contribution – Family $7,100 $7,000
Minimum Deductible – Single $1,400 $1,350
Minimum Deductible – Family $2,800 $2,700
Out-of-Pocket Maximum – Single $6,900 $6,750
Out-of-Pocket Maximum – Family $13,800 $13,500
ACA OOP Maximum Limits (NGFP Non-HSA eligible HDHP) 2020 2019
Maximum out of pocket for NGFP – Single $8,150 $7,900
Maximum out of pocket for NGFP – Family $16,300 $14,700