Seyfarth Synopsis: The IRS has announced increases to key limits for certain health and welfare benefit programs, including HSA contributions for 2023.
The Internal Revenue Service (IRS) recently released 2023 cost-of-living adjustments applicable to dollar limitations for employer-sponsored health and welfare plans.
The changes in the 2023 cost-of-living adjustments for employer-sponsored health and welfare plans are summarized in the table below:
Health and Welfare Program Limits (Rev. Proc. 2022-24) |
2022 |
2023 |
Change |
Health Savings Account (HSA) Annual Contribution Limit
|
$3,650 $7,300 |
$3,850 $7,750 |
+$200 +$450 |
High Deductible Health Plan (HDHP) Minimum Annual Deductible
|
$1,400 $2,800 |
$1,500 $3,000 |
+$100 +$200 |
|
HDHP Maximum Annual Out-of-pocket Limit (Deductibles, Co-payments and Other Amounts, but not Premiums)
|
$7,050 $14,100 |
$7,500 $15,000 |
+$450 +$900 |
| Maximum Amount that May Be Made Newly Available for an Excepted-Benefit Health Reimbursement Arrangements (EBHRA) | $1,800 | $1,950 | +$150 |
Employers who sponsor health and welfare plans should take advantage of the new increased limits by making adjustments to plan administrative/operational procedures.