Deductible and Out-of-Pocket Limits
The Internal Revenue Service has announced the deductible, out-of-pocket, and contribution limits for HSA-qualified plans for the 2020 calendar year. The minimum deductible Is increasing slightly: $1,400 for people with single coverage and $2,800 for people with family coverage. (The minimum individual deductible on an embedded deductible plan is $2,800, the same as the minimum family deductible.) Meanwhile, the out-of-pocket limit increased by $150 for people with single coverage, from $6,750 to $6,900, and by $300 for people with family coverage, from $13,500 to $13,800.
The out-of-pocket exposure for non-HSA-qualified metallic plans is now significantly higher than for “High Deductible” HSA plans. For individuals, it will be $8,150 in 2020 (up from $7,900 in 2019), and for families it will be $16,300 in 2020 (up from $15,800 in 2019). The new figures are summarized in the chart below.
People with an HSA-qualified High Deductible Health Plan who do not have other coverage that pays prior to the deductible can set aside tax-free dollars to pay for eligible medical expenses. The 2020 HSA contribution limits are summarized in the chart below. There’s a $50 increase for people with single coverage (from $3,500 in 2019 to $3,550 in 2020) and a $100 increase for people with family coverage (from $7,000 in 2019 to $7,100 in 2020).
If you have questions about Health Savings Accounts or are interested in one for your family or your employees, please contact JME Insurance at 972.245.0266.