IRS sets new 2020 limits for group plans and HDHP/HSA plans

The Internal Revenue Service (IRS) recently announced the applicable dollar limits for group plans and high deductible health plans (HDHPs)/health savings accounts (HSAs) for the 2020 calendar year.

Below is an overview of the adjusted dollar limits for 2020. Self-only coverage refers to plans for 1 individual, while family coverage refers to plans for 2 or more individuals. The out-of-pocket maximum includes copayments, deductibles and coinsurance amounts, and excludes premiums. 

2020 maximum out-of-pocket limits for group plans 

  • $8,150 for self-only coverage ($7,900 in 2019)
  • $16,300 for family coverage ($15,800 in 2019)

The annual out-of-pocket maximum requirement does not apply to transitional relief and retiree only plans. 

2020 limits for HDHPs/HSAs

Minimum deductible 2020 

  • $1,400 for self-only coverage ($1,350 in 2019)
  • $2,800 for family coverage ($2,700 in 2019)
  • $2,800 for embedded individual deductible ($2,700 in 2019)

Compliant HSA plan examples: 

  • Embedded deductible.1 plan for self-only and family have an embedded deductible, the minimum deductibles are: $2,800 individual and $2,800 family.
  • Non-embedded deductible.1 plan for self-only and family have a non-embedded deductible, the minimum deductibles are: $1,400 individual and $2,800 family.

Out-of-pocket maximum 2020

  • $6,900 for self-only coverage (versus $6,750 in 2019)
  • $13,800 for family coverage  (versus $13,500 in 2019)

Watch for the intersection of the HSA and Affordable Care Act (ACA) rules. The 2020 ACA maximum is $8,150 for individual and $16,300 family (versus $7,900 individual and $15,800 family in 2019). 

Compliant HSA/ACA plan examples: 

  • Embedded out-of-pocket max.1 plan for self-only and families with an embedded out-of-pocket maximum, the maximum amounts are: $6,900 individual and $13,800 family
  • Non-embedded out-of-pocket max.1 plan for self-only and family with a non-embedded deductible, the maximum amounts are: $6,900 individual and $8,150 family

HSA contribution limits 2020

  • $3,550 for self-only coverage (versus $3,500 in 2019)
  • $7,100 for family coverage (versus $7,000 in 2019)

The annual “catch-up” contribution amount for individuals age 55 or older will remain $1,000.

Contact your UnitedHealthcare representative or refer to the 2020 Health Savings Account Guidelines Overview flier for more information.