The Internal Revenue Service annually adjusts the maximum dollar amount that may be contributed to a health savings account (HSA) and related high deductible health plan (HDHP) minimum deductible and out of pocket expense limits for Consumer Price Index – Urban changes from August to August. Business Insurance reports that the IRS officially released the 2007 changes today.
The changes, which vary depending upon whether the individual has self only or self and family HDHP coverage, are as follows:
| 2006 | 2007 | |
|---|---|---|
| HSA contribution max. (self only) | $2,700 | $2,850 |
| HSA contribution max. (family) | $5,450 | $5,650 |
| HDHP Out-of-pocket expense max (self only) | $5,250 | $5,500 |
| HDHP Out-of-pocket expense max (family) | $10,500 | $11,000 |
| Minimum HDHP deductible (self only) | $1,050 | $1,100 |
| HDHP Minimum deductible (family) | $2,100 | $2,200 |
The IRS explains that individuals 55 and older who are covered by an HDHP can make additional catch-up contributions each year until they enroll in Medicare. The additional “catch-up” contributions to HSA allowed for 2006 is $700 and for 2007 it will be $800.