Health Care Reform: HSA Limit Increases Impact 2013 Open Enrollment Decisions

As we wind down the final months of 2012, many companies are beginning open enrollment periods for 2013 employee health care plans. As both employers and employees make decisions concerning next year’s benefits, AssuredPartners NL wants to remind you that the health savings account (HSA) contribution and high-deductible health plans (HDHP) limits have increased for 2013, while flexible spending account (FSA) contributions have been reduced dramatically.

The announcement came this summer from the IRS, and the new limits account for cost-of-living adjustments over the past year. The changes are broken down below:

HSA Contribution Limits:

The new limits for HSA contributions in 2013 are $3,250 for individuals (an increase of $150 from 2012) and $6,450 for families (an increase of $200 from 2012).  The good news is that this allows for employees to invest slightly more tax-free dollars in a HSA, but as we’ll see in a minute, the bad news is that other rates are increasing as well.

HDHP Minimum Deductible Amounts:

The minimum deductible amounts will increase $50 for individuals (to $1,250) and $100 for families (to $2,500) in 2013. While this increase rate is lower than the HSA contribution increase, keep in mind that this is the minimum deductible, and yours could vary based on your health plan.

HDHP Maximum Out-of-Pocket Amounts:

The maximum out-of-pocket expenses for a HDHP have increased $200 for individuals and $400 for families (to $6,250 and $12,500 respectively).  While these increases aren’t huge, if you hit your maximum in 2013, you’ll be paying more than you ever have before in medical bills, even with increased contributions.

FSA Pre-Tax Contributions:

On January 1, 2013, the maximum pre-tax dollar amount employees can put into a flexible spending account is $2,500. This limit will be adjusted in future years, but this substantial decrease could impact many decisions about coverage for 2013.

Finding the right health plan for you, your family, or even your employees can be difficult.  At AssuredPartners NL, we want to make sure you have all the information you need before making that decision. Keep these changes in mind as you make your 2013 health insurance decision or contact us for more information on the right plan for you or your business.

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