The IRS has announced the annual limits for high deductible health plans (HDHPs) and Health Savings Accounts for plan year 2025.
What does this chart mean? The first row tells us what the maximum out-of-pocket cost will be on any health plan. The middle row shows the lowest amount of money that a plan can require if it includes a health savings account. The IRS revises these figures every year to reflect cost of living adjustments.
The third row is the maximum amount consumers or their employers can contribute to a health savings account (HSA).
| Type of Account | 2024 | 2025 | Difference |
| HDHP Out-of-Pocket Limit |
$8,050 self-only $16,100 family |
$8,300 self only $16,600 family |
$250 increase $500 increase |
| HDHP Minimum Annual Deductible |
$1,600 self-only $3,200 family |
$1,650 self-only $3,300 family |
$50 increase $100 increase |
| HSA Annual Contribution Limit |
$4,150 self only $8,300 family |
$4,300 self only $8,550 family |
$150 increase $250 increase |
HSA catch-up contributions for those 55 and older remain at $1,000.
If your client has a plan with the $8,050 single or $16,100 family out-of-pocket maximum (OOPM), be ready for that to hike up to the $8,300/$16,600 mark. Thankfully, the monthly premiums for health insurance plans are so much lower. Honestly, everyone with an HDHP should prepare for an increased OOPM unless they have a grandfathered plan.
If your client has a plan with an HSA, these changes aren’t the worst news. Consumers are now able to contribute even more to their health savings accounts. Why add more? These contributions are tax-free: the government does not apply taxes when adding or taking them out.
On top of that, consumers can also invest the money squirreled away in accounts in things like mutual funds, stocks, bonds, and more. And you guessed it: those potential earnings are also untaxed. This gives those with an HSA a great opportunity to make back some of those health care costs while still having an avenue to pay for qualified medical expenses.
If your clients are near retirement and recently gained access to an HSA, they can chip in a bit more than the younger folks to “catch up.” So if they're 55 or older, they actually can add $5,150 as a single person in 2025 to their account.
But keep this in mind: once consumers sign up for Medicare, they aren’t able to contribute to that HSA anymore. They can still withdraw the money for medical expenses without paying taxes. However, they cannot add more HSA funds to the account.
So who is the best candidate for a high deductible plan, and therefore an HSA? If your clients are comfortable with a higher deductible plan, they probably won't reach their out of pocket max anyway, but they can invest that money into an HSA and start earning on the investments they could possibly make.
But if they find themselves worried about meeting annual deductibles and OOPMs, then maybe a different account is right. Flexible Spending Accounts (FSAs) are also an option for those who don't want HDHPs.
Want to learn even more about health reimbursement accounts, health savings accounts, and other types of health insurance savings accounts? Check out our video on consumer-driven health accounts.