The IRS released updated limits for Health Savings Accounts (HSA) for 2016

Self-Only coverage to remain the same, while Family coverage will increase.

Revenue Procedure 2015-30 was recently released, providing inflation adjustments for Health Savings Accounts (HSA) for the calendar year 2016.  This includes contribution limits and deductible limits for both Self-Only and Family coverage.

Why do carriers have to change the deductibles on plans from year-to-year?  Most often it relates to the minimum deductible for Family coverage as described in the following paragraph.

Family plans that do not meet the high deductible rules. There are some family plans that have deductibles for both the family as a whole and for individual family members. Under these plans, if you meet the individual deductible for one family member, you do not have to meet the higher annual deductible amount for the family. If either the deductible for the family as a whole or the deductible for an individual family member is less than the minimum annual deductible for family coverage, the plan does not qualify as an HDHP.

Example. You have family health insurance coverage in 2013. The annual deductible for the family plan is $3,500. This plan also has an individual deductible of $1,500 for each family member. The plan does not qualify as an HDHP because the deductible for an individual family member is less than the minimum annual deductible ($2,500) for family coverage.  (Source:  IRS Publication 969)

So, for 2016, we can expect that the lowest embedded deductible option to be $2,600 for Self-Only coverage (unchanged from 2015).

For additional information on HSA’s and other health insurance plans, please feel free to contact me at: