With summer coming to a close and the school year kicking into full swing, businesses are moving into full planning mode for the coming year. We’re into the second half of 2016 and 2017 will be here before we know it. Earlier this year, on April 27th, 2016, the IRS released updated annual limits for HSA contributions as well as updated design requirements for HDHPs (high deductible health plans). Since these offer differing limits – businesses need to ensure that HDHPs comply with ACA mandates.
HDHP minimum annual deductibles:
- $1,300 for self-only coverage (same as 2016)
- $2,600 for family coverage (same as 2016)
Out of pocket maximums:
- $6,550 for self-only coverage (same as 2016)
- $13,100 for family coverage (same as 2016)
Maximum annual HSA contributions:
- $3,400 for self-only coverage ($50 increase from 2016)
- $6,750 for family coverage (same as 2016)
In addition to the IRS updates, the U.S. Health and Human Services (HHS), Treasury, and Labor Departments finalized rules addressing 2017 Benefit and Payment Parameters in February of this year. These cover essential health benefits impacting out-of-pocket maximums for non-grandfathered group health plans as shown below.
Annual out-of-pocket maximums for health plans (other than HDHPs with HSAs):
- $7,150 for individual coverage
- $14,300 for family coverage
In reading the above, high deductible health plan with family deductibles are higher than the ACA’s cost-sharing limit for self-only coverage. Therefore, these must be designed to limit the maximum out-of-pocket limit to no more than $6,550 for any one individual.
Have questions? Give us a call today. QBS Benefits Department is here to help!