Following the many hardships caused by Covid-19, members of the House Education and Labor Health Subcommittee have asked Congress to make it easier for Health Savings Account holders to obtain some low or no-cost mental health care before meeting their deductibles. In response to the pandemic, Congress allowed first-dollar coverage for telehealth. Members of the committee would like to make this option permanent and include access to worksite clinics as well. With estimates reflecting a nearly four-fold rise in the number of US adults reporting symptoms of depression or anxiety compared to a year ago, we can expect calls for help to continue.
The IRS has announced that contribution limits for 2022 are increasing by $50 for individual coverage and $100 for family coverage, to $3,650 and $7,300 respectively. This represents an increase of 1.4% from 2021 levels and those age 55 and older can still contribute an additional $1,000 per year. While minimum annual deductible levels will remain unchanged at $1,400 for individual coverage and $2,800 for family coverage, maximum out-of-pocket expense limits for HDHPs will increase to $7,050 for individual coverage and $14,100 for family coverage.
Currently, patients with high deductible health plans and health savings accounts have to pay for treatment of chronic illnesses out-of-pocket until they have reached their required deductible. According to IRS Notice 2019-45, those with chronic conditions such as diabetes, high blood pressure or asthma, will reduce their financial burden prior to reaching their health plan deductible.
According to Fidelity Investments, a couple retiring this year can expect to spend $285,000 on medical expenses during their retirement. And while the rate of healthcare cost increases has slowed in recent years, Americans are living longer, meaning they will need to address the cost of healthcare for a longer period of time.
Employees will be able to save some additional healthcare dollars in 2020 as the IRS will increase the limit on deductible contributions to an HSA by $50 for individuals and $100 for families. The limits will be $3,550 for individuals with self-only coverage and $7,100 for family coverage. The minimum deductible for a qualifying high deductible health plan will also increase, rising to $1,400 for single coverage and $2,800 for family coverage
Health savings accounts are hot, with nearly two-thirds of respondents to a Plan Sponsor Council of America survey saying they believe that even those without a high deductible health plan should qualify. A benefit often cited by employers and employees alike is that HSAs can be a valuable part of one’s retirement strategy, since healthcare expenses are viewed as one of the largest people face in retirement.
The IRS and Department of Health and Human Services recently released new limits for contributions to HSAs and Health FSAs for 2017. Contributions by individuals to HSAs cannot exceed $3,400 in 2017, with the maximum family contribution remaining at $6,750, the same as 2016. Once again, a $1,000 catch-up contribution also applies.
While it will take support from Republicans and Democrats to fully replace Obamacare, a simple majority of Republican senators could repeal parts of the law through reconciliation. Here are just a few:
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