IRS Releases 2025 HSA Contribution Limits and HDHP Deductible and Out-of-Pocket Limits
Compliance News
Thursday, May 23 2024
In Rev. Proc. 2024-25, the IRS released the inflation-adjusted amounts for 2025 relevant to Health Savings Accounts (HSAs) and high deductible health plans (HDHPs). The table below summarizes those adjustments and other applicable limits.
Out-of-Pocket Limits Applicable to Non-Grandfathered Plans
The ACA’s out-of-pocket limits for in-network essential health benefits have also been announced and have decreased for 2025.
Note that all non-grandfathered group health plans must contain an embedded individual out-of-pocket limit within family coverage if the family out-of-pocket limit is above $9,200 (2025 plan years) or $9,450 (2024 plan years). Exceptions to the ACA’s out-of-pocket limit rule have been available for certain non-grandfathered small group plans eligible for transition relief (referred to as “grandmothered” plans) since policy years renewed on or after January 1, 2014. Each year, CMS has extended this transition relief for any grandmothered plans that have been continually renewed since on or after January 1, 2014. However, in its March 23, 2022 Insurance Standards Bulletin, CMS announced that the limited nonenforcement policy will remain in effect until CMS announces that such coverage must come into compliance with relevant requirements. Thus, we will no longer see annual transition relief announced.
To Read the Full Alert, Click Here
| 2025 | 2024 | Change | |
| Annual HSA Contribution Limit (employer and employee) | Self-only: $4,300 Family: $8,550 | Self-only: $4,150 Family: $8,300 | Self-only: +$150 Family: +$250 |
| HSA catch-up contributions (age 55 or older) | $1,000 | $1,000 | No Change |
| Minimum Annual HDHP Deductible | Self-only: $1,650 Family: $3,300 | Self-only: $1,600 Family: $3,200 | Self-only: +$50 Family: +$100 |
| Maximum Out-of-Pocket for HDHP (deductibles, co-payment and other amounts except premiums) | Self-only: $8,300 Family: $16,600 | Self-only: $8,050 Family: $16,100 | Self-only: +$250 Family: +$500 |
Out-of-Pocket Limits Applicable to Non-Grandfathered Plans
The ACA’s out-of-pocket limits for in-network essential health benefits have also been announced and have decreased for 2025.
| 2025 | 2024 | Change | |
| ACA Maximum Out-of-Pocket | Self-only: $9,200 Family: $18,400 | Self-only: $9,450 Family: $18,900 | Self-only: -$250 Family: -$500 |
Note that all non-grandfathered group health plans must contain an embedded individual out-of-pocket limit within family coverage if the family out-of-pocket limit is above $9,200 (2025 plan years) or $9,450 (2024 plan years). Exceptions to the ACA’s out-of-pocket limit rule have been available for certain non-grandfathered small group plans eligible for transition relief (referred to as “grandmothered” plans) since policy years renewed on or after January 1, 2014. Each year, CMS has extended this transition relief for any grandmothered plans that have been continually renewed since on or after January 1, 2014. However, in its March 23, 2022 Insurance Standards Bulletin, CMS announced that the limited nonenforcement policy will remain in effect until CMS announces that such coverage must come into compliance with relevant requirements. Thus, we will no longer see annual transition relief announced.
To Read the Full Alert, Click Here