Broker Broadcast
IRS issues HSA contribution amount rules for 2011
IRS regulations dictate that eligible individuals with self-only coverage
under an HDHP (high-deductible health plan) may contribute an annual maximum of
$3,050 to their health savings account (HSA). Eligible individuals with family
coverage (coverage for two or more individuals) under an HDHP may contribute up
to $6,150 to their HSA. Individuals age 55 or older who are not enrolled in
Medicare may contribute more to the account per year. The catch-up
contribution limit for qualified individuals in 2011 is $1,000.
To be qualified for an HSA, the HDHP must meet certain IRS regulations.
To qualify as an HDHP:
- The minimum deductible amount must be $1,200 for self-only coverage and $2,400 for family coverage.
- The out-of-pocket maximum must be no higher than $5,950 for individual or $11,900 for family coverage.
- The HDHP must be set up with a combined medical/pharmacy deductible. This deductible must apply to the out-of-pocket maximum.
- All medical and pharmacy services must be subject to deductible and out-of-pocket maximum except for preventive services.
Verifying Plan Eligibility/HDHP Verifier Tool
Because contribution regulations typically change on an annual basis, all HDHPs with an HSA for new business, new business from existing accounts and renewal groups must run their HDHP plan through the HDHP Verifier, a tool that will ensure IRS compliance each year. The HDHP Verifier Tool is located on United eServices.
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