Reform Alerts - News from the Blues' Office of Health Reform

IRS provides guidance on calendar year 2016 High Deductible Health Plans Out-of-Pocket Maximum Limits, Minimum Deductible Levels and Health Savings Account Contribution Limitations

August 3, 2015

On May 4, 2015, the Internal Revenue Service (IRS) released calendar year 2016 out-of-pocket (OOP) maximum limits and minimum deductible amounts for high deductible health plans (HDHPs).

For calendar year 2016, the OOP maximum limits will be:

  • $6,550 for self-only coverage (up from $6,450 in 2015)
  • $13,100 for family coverage (up from $12,900 in 2015)

Please note: Due to a difference in annual adjustment criteria, the OOP levels for HDHPs are lower than the OOP levels required of individual ($6,850), and small, large group and self-funded coverage ($13,700) in 2016 under the Affordable Care Act.

There is no change to the HDHP minimum deductible levels for calendar year 2016:

  • $1,300 for self-only coverage
  • $2,600 for family coverage

The annual Health Savings Account (HSA) contribution limitations for calendar year 2016 were also included in the guidance released on May 4:

  • $3,350 annual contribution limit for self-only coverage
  • $6,750 annual contribution limit for family coverage

Where can I find more information?

More information from the IRS can be found here.

The information in this document is based on preliminary review of the national health care reform legislation and is not intended to impart legal advice. The federal government continues to issue guidance on how the provisions of national health reform should be interpreted and applied. The impact of these reforms on individual situations may vary. This overview is intended as an educational tool only and does not replace a more rigorous review of the law’s applicability to individual circumstances and attendant legal counsel and should not be relied upon as legal or compliance advice. As required by US Treasury Regulations, we also inform you that any tax information contained in this communication is not intended to be used and cannot be used by any taxpayer to avoid penalties under the Internal Revenue Code.