Health plans

IRS announces 2023 limits for health savings accounts, high-deductible health plans, and excluded-benefit HRAs

Recently, the Internal Revenue Service (IRS) announced (See Tax procedure 2022-24) cost-of-living adjustments to dollar limits applicable to health savings accounts (HSAs), high-deductible healthcare plans (HDHPs), and excepted health benefit reimbursement (HRAs) plans for 2023. All dollar limits currently in effect for 2022 will change for 2023, except for one limit. The HSA catch-up contribution for those aged 55 and over will not change as it is not subject to cost of living adjustments.

The table below compares the applicable dollar limits for HSAs, HDHPs, and excluded-benefit HRAs for 2022 and 2023.

HEALTH AND WELLNESS PLAN LIMITS 2022 2023
HDHP – Maximum annual disbursement limit (excluding premiums)
Coverage for self only $7,050 $7,500
Family coverage $14,100 $15,000
Coverage for self only $1,400 $1,500
Family coverage $2,800 $3,000
Coverage for self only $3,650 $3,850
Family coverage $7,300 $7,750
Catch-up contributions (55 years and over) $1,000 = $1,000
Annual contribution ceiling $1,800 $1,950

NEXT STEPS

Plan sponsors should update payroll and plan administration systems for the 2023 cost-of-living adjustments and incorporate the new limits into relevant member communications, such as enrollment and communication materials documents, plan documents and summary plan descriptions.