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Employers are aware of how the economy can impact the cost of benefits. A recent hike in inflation prompted the Internal Revenue Service (IRS) to respond by announcing there will be a contribution limit spike for Health Savings Accounts (HSAs) in 2023 as well as an increase in the minimum deductible to qualify as a High Deductible Health Plan (HDHP). The timing of this announcement, April 29, 2022, is beneficial to employers as they start to plan for their 2023 benefit renewals.

For those considering adding an HDHP option during this open enrollment, remember that implementing an HDHP with a corresponding HSA can have a positive impact on your overall cost to offer health care coverage to your employees and family members. An HSA paired with an HDHP can allow employees to save for the high deductibles and other out-of-pocket medical costs associated with the HDHP. Employers and employees can both contribute to HSAs. Employee contributions are made with pre-tax dollars through payroll. Please speak with your broker or benefits consultant if considering adding this benefit.

Here are the details for the 2023 limits:

• HSA contribution limit (employer + employee)

  • Self-only: $3,850

  • Family: $7,750

• HSA catch-up contributions (age 55 or older)

  • $1,000

• HDHP minimum deductibles

  • Self-only: $1,500

  • Family: $3,000

• HDHP maximum out-of-pocket amounts (deductibles, co-payments, and other amounts, but not premiums)

  • Self-only: $7,500

  • Family: $15,000

Plan sponsors should update both payroll and plan administration systems for these increases. And then, be sure to update any participant communications, such as open enrollment materials, internal websites, and summary plan descriptions.

Employers Council will continue to post updates as other benefits limits are updated and released for 2023. If you have questions,  contact the Member Experience team by email or call 800-884-1328.