The IRS has announced adjustments that affect health savings accounts in 2013. HSA contribution limits and High Deductible Health Plan (HDHP) out-of-pocket maximums will increase slightly. For the first time in three years, the HDHP minimum required deductibles have increased.
To review, HSAs are tax-advantaged medical savings accounts available to taxpayers who are enrolled in an HSA-qualified high-deductible health plan. The policyholder must not be covered by other non-HDHP health insurance or Medicare and cannot be claimed as a dependent on someone else’s tax return. The funds contributed to the account are not subject to federal income tax at the time of deposit. Unused amounts in one year can be carried over to following years and added to subsequent contributions.
HSA Contribution Limits:
- Individuals (self-only coverage) – $3,250 (up $150 from 2012)
- Family coverage – $6,450 (up $200 from 2012)
HDHP Minimum Required Deductibles:
- $1,250 for self-only coverage
- $2,500 for family coverage
(Out-of-pocket expenses include deductibles, co-payments, and other amounts, but not premiums)
- $6,250 for self-only coverage
- $12,500 for family coverage
Under guidelines implemented in the Patient Protection and Affordable Care Act, over-the-counter drugs may only be reimbursed if they have a prescription. If a policyholder uses an HSA to pay for items or services that aren’t qualified medical expenses, the tax penalty is 20 percent of the HSA distribution.