The IRS has released the inflation adjusted amounts for Health Savings Accounts (HSA) for 2016.

The new HSA limits for deductibles, out-of-pocket limits, and annual contributions will be of particular interest to employers with high deductible medical plans and those considering implementing high deductible health plans.

But even employers that do not have high deductible medical plans for their workers need to know just how much their employees can set aside for medical expenses.


The 2016 HSA limits are:

Self-only coverage              Family coverage

Out-of-Pocket Maximum                  $6,550                                   $13,100

Minimum Annual Deductible           $1,300                                   $2,600

Maximum Annual Contribution*    $3,350                                   $6,750

*Does not include the additional $1,000 catchup contribution available to individuals age 55 and older.


The Patient Protection and Affordable Care Act (“PPACA”) has limited the out-of-pocket maximum employers sponsoring non-grandfathered medical plans may use since 2014. For 2014, the limit was equal to the out-of pocket maximum for HSAs.

However, beginning in 2015, the maximum out-of-pocket limits for non- grandfathered medical plans and high deductible health plans began to diverge.

That divergence will continue in 2016 when the out-of-pocket maximums for high deductible health plans will be $6,550 for self-only coverage and $13,100 for other than self-only coverage.

The out-of-pocket maximums that may be used under a non-grandfathered health plan in 2016 will be $6,850 for self-only coverage and $13,700 for other than self-only coverage.