Agencies Update Out-of-Pocket Maximums and HSA/HDHP Amounts for 2021

June 03, 2020

In May of 2020, the Internal Revenue Service (IRS) issued Revenue Procedure 2020-32, which provides inflation-adjusted amounts for health savings accounts (HSAs) paired with high-deductible health plans (HDHPs). The Department of Health and Human Services (HHS) also issued its annual regulatory update for public Exchanges and other ACA requirements, including out-of-pocket maximums for all non-HSA/HDHP group health plans. We summarize these updates below.

2021 Contributions and Deductibles for HSA/HDHP Arrangements

Effective for 2021:

1 | The annual contribution limit for HSAs arrangements will be

$3,600 for self-only coverage ($50 increase) and
$7,200 for family coverage ($100 increase).

2 | The minimum deductible for HSA/HDHP arrangements will be

$1,400 for self-only coverage (no change) and
$2,800 for family coverage (no change).

For participants age 55 and older, the annual limit on HSA catch-up contributions remains $1,000.

Out-of-Pocket Maximums

Under the new HHS regulations and above IRS guidance, out of-pocket maximums for 2021 (and previous years) are as follows:

Out-of-Pocket Maximums by Year
HSA/HDHPs			All Other Group Health Plans
	Self-Only	Family	Self-Only	Family
2021	$7,000	$14,000	$8,550*	$17,100
2020	$6,900	$13,800	$8,150*	$16,300
2019	$6,750	$13,500	$7,900*	$15,800
2018	$6,650	$13,300	$7,350*	$14,700
2017	$6,550	$13,100	$7,150*	$14,300
2016	$6,550	$13,100	$6,850*	$13,700
2015	$6,450	$12,900	$6,600	$13,200
2014	$6,350	$12,700	$6,350	$12,700

* Embed self-only out-of-pocket maximum for family coverage

Resources

Upcoming Webinar

The Business Group will host a webinar on Wednesday June 17, 2020 from 12:00 – 2:00PM ET during which we will discuss this and other regulatory developments for group health plans. Members will receive an email invitation with registration instructions.

If you have questions, comments, or concerns about these or other regulatory and compliance issues, please contact us.

We provide this material for informational purposes only; it is not a substitute for legal advice.

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