The IRS recently announced limits for coverage and contributions to HSA health plans for 2015. The agency released the news in Revenue Procedure 2014-30 (click here to see the official document).
This update is important for employers and their employees. For employers who offer a health-savings-account-qualified plan option, they must comply with the plan minimums and limits set by the IRS. Employees must comply with the IRS annual contribution limits.
The annual contribution limits for HSA health plans, the annual out-of-pocket limits, and the annual deductible limits all have been increased for 2015. The revenue procedure is effective for calendar year 2015.
Employers should communicate to employees this IRS news in enrollment materials. An announcement in a company newsletter about the increases and why they're significant also is a best practice. This benefits communication is especially important to employers that are trying to increase enrollment in a high-deductible health plan.
The increase in these limits may make high-deductible health plans more attractive to some individuals. HSA health plans are a staple of consumer-driven strategies that allow healthy individuals to save tax exempt dollars for a "rainy day."
Of course, this type of plan doesn't work for everyone. Each employee population is unique. But we're seeing more employers move toward offering their talent more choice; for instance, private health exchanges are gaining critical mass.
Here's an easy-to-understand graphic that breaks down the numbers of the IRS announcement:
How do you think this news will affect your benefits program? Please sound off in comments!