By Jenny Ivy
The IRS has announced adjustments that affect health savings accounts in 2013
The HSA contribution limits and high deductible health plan out-of-pocket maximums are up slightly over 2012. For the first time in three years, the HDHP minimum required deductibles have increased.
are tax-exempt accounts that help people save money for eligible medical expenses. In order to qualify for an HSA, the policyholder must be enrolled in an HSA-qualified high deductible health plan, and must not be covered by other non-HDHP health insurance or Medicare, and cannot be claimed as a dependent on someone else’s tax return.
HSA contribution limits:
- Individuals (self-only coverage) - $3,250 (up $150 from 2012)
- Family coverage - $6,450 (up $200 from 2012)
HDHP minimum required deductibles:
- $1,250 for self-only coverage
- $2,500 for family coverage
(Out-of-pocket expenses include deductibles, co-payments, and other amounts, but not premiums)
- $6,250 for self-only coverage
- $12,500 for family coverage
Under guidelines implemented in the Patient Protection and Affordable Care Act, over-the-counter drugs may only be reimbursed if they have a prescription. If a policyholder uses an HSA to pay for items or services that aren't qualified medical expenses, the tax penalty is 20 percent of the HSA distribution.
Originally published on BenefitsPro.com