May 13, 2021

In May 2021, the Internal Revenue Service (IRS) issued Revenue Procedure 2021-25, 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 and special enrollment periods for individuals who lose access to subsidized COBRA coverage. These updates are summarized below:

2022 Contributions and Deductibles for HSA/HDHP Arrangements
	Annual Contribution Limit		Minimum Deductible
	Self-Only	Family	Self-Only	Family
2022	$3,650	$7,300	$1,400	$2,800
2021	$3,600	$7,200	$1,400	$2,800

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 2022 and 2021 are as follows:

Out-of-Pocket Maximums by Year
	HSA/HDHPs		All Other Group Health Plans
	Self-Only	Family	Self-Only	Family
2022	$7,050	$14,100	$8,700*	$17,400
2021	$7,000	$14,000	$8,550*	$17,100

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

Special Enrollment Period for Employees Losing Access to COBRA Subsidies

HHS provides individuals who lose access to subsidized COBRA coverage with a special enrollment period (SEP) for individual or exchange coverage. This will pertain to those who are receiving COBRA subsidies under the American Rescue Plan ending on September 30, 2021. Individuals will become eligible for the SEP on the last day of the period for which COBRA continuation coverage was paid for or subsidized by the employer or government.

As government subsidies wind down, employers may want to notify employees of the availability of special enrollment periods for individual or exchange coverage.

Resources

• Revenue Procedure 2021-25
• HHS Notice of Benefit and Payment Parameters for 2022

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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