2016 HSA Limits Released

[MBSC]

2016 Maximum HSA Contribution:
Individual: $3350 (unchanged from 2015)
Family: $6750 (+$100)

2016 HDHP Minimum Deductible:
Individual: $1300 (unchanged)
Family: $2600 (unchanged)

2016 HDHP Max OOP:
Individual: $6550 (+$100)
Family: $13100 (+$200)

Source: IRS Announces Changes to 2016 Health Savings Account Limits Reports ConnectYourCare

[Fermion]

Do I read that as you must have a plan with at least a minimum deductible of $1300 in order for it to be HSA qualified (along with the other requirements for HSA qualification)?

Cost sharing can, I think, put one outside of being able to fund a HSA.

[hnzw_rui]

Quote:

Originally Posted by Fermion Do I read that as you must have a plan with at least a minimum deductible of $1300 in order for it to be HSA qualified (along with the other requirements for HSA qualification)? Cost sharing can, I think, put one outside of being able to fund a HSA.

The high deductible health plan is pretty much the only HSA qualification as far as I'm aware. Oh, and you can't be a dependent on someone else's return.

I wanted to contribute to HSA as my LTC self-insurance. Alas, we've got a pretty good health insurance plan at work so I don't qualify. Not that I'm complaining.

[Fermion]

Cost-Sharing Reductions and Health Savings Accounts

Q8: How should plan variations for QHPs that are high-deductible health plans (HDHPs) designed to be paired with a health savings account (HSA) be structured?

A8: If an issuer seeks to offer a QHP designed to be eligible for pairing with an HSA in 2014, the issuer must comply with the cost-sharing reduction standards described in 45 CFR 156 subpart E. CMS recognizes that certain plan variations of a QHP may require a low or zero deductible, or that certain services be exempt from the deductible. This may result in the plan variation not meeting IRS standards for an HDHP and therefore not being eligible to be offered in conjunction with an HSA. We recommend that issuers and Marketplaces educate consumers about this issue, both during open enrollment and when an individual has a change in eligibility for cost-sharing reductions. An individual who would not be eligible for the tax advantages of an HSA because the plan variation to which he or she would be assigned does not qualify as an HDHP may purchase the plan without cost-sharing reductions

[gauss]

Quote:

Originally Posted by Fermion Do I read that as you must have a plan with at least a minimum deductible of $1300 in order for it to be HSA qualified (along with the other requirements for HSA qualification)?

That has been my understanding of HSA's since they began. You need to be covered by a high-deductible health plan (HDHP) to contribute to an HSA.

In many cases, the difference in the monthly premiums between a HDHP and a traditional health plan may make up a significant fraction of the deductible. Don't forget that HDHP plans are allowed to provide "preventative/screening" services each year that the insurance company fully pays for. Medical/Diagnostic services to treat a condition, on the other hand, will be subject to the deductible.

If an employer gives you an added contribution to your HSA then it may be an easy decision if you are healthy and can self-insure for the maximum out of pocked limit.

Given that health plans typically have a maximum 1 year commitment, I have always found the HDHP/HSA as the way to go in our case. After having these for close to 10 years, we have hit the deductible one year (hello kidney stones) and have never hit the out of pocket maximum.

-gauss

[Fermion]

Quote:

Originally Posted by gauss That has been my understanding of HSA's since they began. You need to be covered by a high-deductible health plan (HDHP) to contribute to an HSA. -gauss

Yes, but even if you sign up for a HDHP, you may not be eligible to contribute to a HSA if you get cost sharing benefits toward the deductible. I don't know where the cutoff is...perhaps it is at the $1300 individual level.

It complicates things if one is trying to maximize ACA benefits (subsidy + cost sharing) by income manipulation and yet wants to be able to capture the tax benefits and future Roth-like growth of an HSA. There may be a sweet spot where you maneuver your income up a few bucks, lose a couple dollars in potential cost sharing but qualify to contribute $6700 to a HSA-Roth.

[ZMAN]

Does a high deductible Medigap Part F plan (say the high deductible version of Plan F) qualify to allow you to have an HSA account?

[audreyh1]

Quote:

Originally Posted by ZMAN Does a high deductible Medigap Part F plan (say the high deductible version of Plan F) qualify to allow you to have an HSA account?

Once you reach Medicare age, you can no longer contribute to an HSA account. You can still withdraw from it to cover qualified expenses including some of the Medicare premiums.