Seyfarth Synopsis: The IRS has announced increases to key limits for certain health and welfare benefit programs, including HSA contributions for 2023.

The Internal Revenue Service (IRS) recently released 2023 cost-of-living adjustments applicable to dollar limitations for employer-sponsored health and welfare plans.

The changes in the 2023 cost-of-living adjustments for employer-sponsored health and welfare plans are summarized in the table below:

Health and Welfare Program Limits (Rev. Proc. 2022-24)
2022
2023
Change
Health Savings Account (HSA) Annual Contribution Limit

  • Self-only Coverage
  • Family Coverage

 

$3,650

$7,300

 

$3,850

$7,750

 

+$200

+$450
High Deductible Health Plan (HDHP) Minimum Annual Deductible

  • Self-only Coverage
  • Family Coverage

 

$1,400

$2,800

 

$1,500

$3,000

 

+$100

+$200

HDHP Maximum Annual Out-of-pocket Limit (Deductibles, Co-payments and Other Amounts, but not Premiums)

  • Self-only Coverage
  • Family Coverage

 

 

$7,050

$14,100

 

 

$7,500

$15,000

 

 

+$450

+$900
Maximum Amount that May Be Made Newly Available for an Excepted-Benefit Health Reimbursement Arrangements (EBHRA) $1,800 $1,950 +$150

Employers who sponsor health and welfare plans should take advantage of the new increased limits by making adjustments to plan administrative/operational procedures.