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By June 1, the Internal Revenue Service must announce inflation-adjusted limits for Health Savings Accounts (HSA) contributions and certain cost-sharing limits on High-Deductible Health Plans (HDHPs). Each year, we make sure our clients have this information at their fingertips.
The announcement covers changes to the HSA contribution limit, the minimum deductible amount for HDHPs, the maximum out-of-pocket limit for HDHPs, and Health Reimbursement Arrangement (HRA) adjustments.
These changes will go into effect on January 1 of the next year. Plan years beginning before that date will continue to use the figures for previous years.
In 2027, eligible individuals with self-only HDHP coverage may contribute up to $4,500 to their HSAs over the course of the year. This represents a $100 increase from 2026's limits. Those with family HDHP coverage may contribute up to $9,000, an increase of $250 from 2026.
The minimum deductible for HDHPs will increase to $1,700 for individual coverage and $3,400 for family coverage, representing a $50 and $100 increase, respectively. Out-of-pocket maximums may rise to $8,500 for individuals and $17,000 for families. These figures mark a $200 and $400 increase.
Contributions and out-of-pocket limits for
Health Savings Accounts and High-Deductible Health Plans
|
2027 |
2026 |
Change |
|
|
HSA contribution limit (Employer + Employee) |
Individual: $4,500 Family: $9,000 |
Individual: $4,400 Family: $8,750 |
Individual: +$100 Family: +$250 |
|
HSA Catch-up contributions (Age 55+) |
$1,000 |
$1,000 |
None |
|
HDHP Minimum Deductible |
Individual $1,750 Family: $3,500 |
Individual: $1,700 Family: $3,400 |
Individual: +$50 Family: $+100 |
|
HDHP Maximum Out-of-Pocket Amounts |
Individual: $8,700 Family: $17,400 |
Individual: $8,500 Family: $17,000 |
Individual: +$200 Family: +$400 |
There is no change to the catch-up contribution limit of $1,000. Individuals 55 and older may continue to save an additional $1,000 per year above these figures.
The maximum amount plans may set aside for excepted benefit HRAs will be $2,250.
DPCSA limits
Starting in 2026, the One Big Beautiful Bill Act allows HSA funds to pay for subscription to Direct Primary Care arrangements, up to a certain limit.. That limit for 2027 will be $150 for individuals and $300 for an arrangement that covers more than one person. If this limit is exceeded, the arrangement must be treated as a health plan.
So what?
With both deductibles and out-of-pocket maximums increasing, your clients should be prepared for additional financial exposure. Fortunately, HSA contribution limits are also rising, which can help soften the blow for those who can afford to save.
And, there are plenty of good reasons to save. Remember, HSA contributions are non-taxable, as are withdrawals for qualified expenses. Even better? HSA funds can always be invested in stocks, bonds, mutual funds, and other vehicles -- and those earnings also go untaxed.
Be careful, though -- enrolling in premium-free Medicare Part A will end your clients' ability to contribute to their HSAs. That decision is permanent. That money still belongs to you, and can still be used for qualifying medical expenses, but you can't add more once you are not in that HDHP anymore.
What's next?
In the individual Affordable Care Act market, you'll see these adjustments take shape when plan details are released in the early fall. In the employer group market, your preview will likely come a little earlier, in the late summer months. We'll keep you posted as plan details are released.