Recently, the Internal Revenue Service (IRS) announced (See Revenue Procedure 2021-25) cost-of-living adjustments to the applicable dollar limits for health savings accounts (HSAs), high-deductible health plans (HDHPs) and excepted benefit health reimbursement arrangements (HRAs) for 2022. Many of the dollar limits currently in effect for 2021 will change for 2022. The HSA catch-up contribution for individuals ages 55 and older will not change as it is not subject to cost-of-living adjustments.
The table below compares the applicable dollar limits for HSAs, HDHPs and excepted benefit HRAs for 2021 and 2022.
HEALTH AND WELFARE PLAN LIMITS
HDHP – Maximum annual out-of-pocket limit (excluding premiums)
HDHP – Minimum annual deductible
HSA – Annual contribution limit
Catch-up contributions (ages 55 and older)
Excepted Benefit HRA
Annual contribution limit
Plan sponsors should update payroll and plan administration systems for the 2022 cost-of-living adjustments and incorporate the new limits in relevant participant communications, such as open enrollment and communication materials, plan documents and summary plan descriptions.
For further information about applying the new HSA, HDHP and excepted benefit HRA plan limits for 2022, please contact your regular McDermott lawyer or one of the authors above.