Industry News

Recently, the Internal Revenue Service (IRS) issued Revenue Procedure 2022-24: 2023 Inflation-Adjusted Amounts for HSAs, High-Deductible Health Plans, and Excepted Benefit Health Reimbursement Arrangements. The IRS announced cost-of-living adjustments to the applicable dollar limits for Health Savings Accounts (HSAs), High Deductible Health Plans (HDHPs) and the maximum amount that may be made newly available for certain Health Reimbursement Arrangements (HRAs) for 2023. 

For calendar year 2023, the annual limitation on deductions under IRC § 223(b)(2)(A) for an individual with self-only coverage under a HDHP is $3,850. For calendar year 2023, the annual limitation on deductions under IRC § 223(b)(2)(B) for an individual with family coverage under a HDHP is $7,750.

For calendar year 2023, the IRS defines a HDHP under IRC § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,500 for self-only coverage or $3,000 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $7,500 for self-only coverage or $15,000 for family coverage.

For plan years beginning in 2023, the maximum amount that may be made newly available for the plan year for an excepted benefit HRA (under Regs. Sec. 54.9831-1(c)(3)(viii)) is $1,950. Employers use excepted benefit HRAs to help cover the cost of employees’ vision, dental, or short-term, limited-duration insurance plan premiums. 

Rev. Proc. 2022-24 is available here.