The Internal Revenue Service (IRS) has recently released the 2019 cost-of-living adjusted limits for group plans, high deductible health plans (HDHPs), and health savings accounts (HSAs). Below are the details:

    HSA Contribution Limits.

    The 2019 annual HSA contribution limit is $3,500 for individuals with self-only HDHP coverage (a $50 increase from 2018), and $7,000 for individuals with family HDHP coverage (a $100 increase from the restored 2018 limit). The annual “catch-up” contribution amount for individuals age 55 or older will remain $1,000.

    HDHP Minimum Deductibles.

    The 2019 minimum annual deductible is $1,350 for self-only HDHP coverage and $2,700 for family HDHP coverage (both unchanged from 2018). Additionally, embedded individual deductible will be $2,700.

    Maximum out-of-pocket limit for 2019 group plans.

    The 2019 maximum out-of-pocket limit is $7,900 for self-only coverage ($7,350 in 2018) and $15,800 for family coverage ($14,700 in 2018). The annual out-of-pocket maximum requirement does not apply to transitional relief and retiree only plans.

    HDHP Out-of-Pocket Maximums.

    The 2019 limit on out-of-pocket expenses (including items such as deductibles, copayments, and coinsurance, but not premiums) is $6,750 for self-only HDHP coverage (a $100 increase from 2018), and $13,500 for family HDHP coverage (a $200 increase from 2018).

    It is important to note that The IRS has indicated that unlike 2018, they do not anticipate any changes in the 2019 HSA contribution levels, so employers should feel comfortable moving forward with setting their contribution strategies for 2019.

    As employers prepare for the 2019 plan year, they should keep in mind the rules outlined above and ensure that any plan materials and participant communications reflect the new limits.