We are almost halfway through 2025, and now is the time when organizations can analyze their benefit offerings and make strategic decisions about their employer-sponsored health plans before open enrollment begins. The IRS has announced the 2026 inflation adjustments that impact health savings account (HSA) contribution limits as well as limits for high-deductible health plans (HDHPs).
An HSA is a tax-advantaged savings tool designed to help individuals and families manage health care costs. HSAs are a way to save for medical expenses and promote financial wellness pre- and post-retirement. They have continued to gain popularity since 2006, when they started to be offered alongside high-deductible health plans.
Currently, the maximum annual contribution limit for individuals with self-only health coverage under an HSA-qualified HDHP is set at $4,300. For families, the current annual HSA limit is $8,550. These contributions are tax-deductible, and any interest or earnings generated within the HSA account grows tax-free.
The HSA contribution limits for 2026 have been increased to help keep pace with inflation and the rising costs of health care. They are as follows:
In 2026, to qualify as an HDHP, the annual deductible will increase to $1,700 (up from $1,650 in 2025) for individual coverage and $3,400 (up from $3,300 in 2025) for family coverage. This is important for employers that help fund HSAs in determining if the employer contributions will increase next year.
HDHP out-of-pocket maximums will increase in 2026 to $8,500 for self-only HDHP coverage (up from $8,300 in 2025) and $17,000 for family HDHP coverage (up from $16,600 in 2025).
Additionally, there has been an inflation adjustment for those offering an excepted benefit HRA (EBHRA). The maximum amount that may be made newly available for the 2026 plan year will be $2,200 (up from $2,150 in 2025).
By taking advantage of higher contribution limits, individuals and families can better prepare for health care expenses, ensure financial security, and potentially bolster their retirement savings.
Look toward your total rewards philosophy and make sure that if changes are implemented, they are in alignment. This should be reviewed annually. If you offer an HDHP and have a corresponding HSA, communicate to employees the value of contributing to their HSA (and/or the value of the employer contribution) for now and into the future. If you have any questions, please contact Employers Council.
Jana Karr is a human resources consultant for Employers Council.