2018 HDHP Cost Sharing Limits

The IRS has released the cost sharing limits for high deductible health plans for plan years starting during the 2018 calendar year. For the calendar year of 2018, individuals with self-only coverage may contribute $3,450 to their health savings account (HSA), while those with family coverage may contribute $6,900 to their HSA.

High deductible health plans for plan years for the 2018 calendar year may not have an annual deductible of less than $1,350 for single coverage or $2,700 for family coverage. Likewise, the annual out-of-pocket expenses for the 2018 calendar year for high deductible health plans cannot exceed $6,650 for self-only coverage or $13,300 for family coverage.

These limits will be in effect for plan years beginning in 2018.

Affordability Guidelines under the Employer Mandate

The IRS also released the affordability safe harbor percentage for employers to use beginning for plan years beginning on or after January 1, 2018. Employers should use 9.56% to determine their affordability for their 2018 plan year. This is a decrease from the 2017 affordability safe harbor percentage.

Please contact your Assurance representative if you have any questions.

Information contained herein is not intended to constitute tax or legal advice and should not be used for purposes of evading or avoiding otherwise applicable regulatory responsibilities as issued by the federal or state government(s) and/or taxes owed under the Internal Revenue Code. You are encouraged to seek advice from your legal or tax advisor based on your circumstances.