Changes to IRS minimum deductible and allowable out of pocket maximums for HSA plans in 2020

Effective January 1, 2020, the IRS is raising minimum deductible levels and allowable out-of-pocket maximums for health savings account (HSA)–qualified plans. These changes will be effective upon the 2020 contract renewal. See below for how this might affect your clients’ plans.

Minimum deductible levels

The impact of changes to minimum deductibles for an HSA-qualified plan depends on the plan’s 2019 self-only deductible:*

 

  2019 2020
Self-only deductible Self-only: $1,350 Self-only: $1,400
less than $2,700 in 2019

Family member: $2,700

Family: $2,700

Family member: $2,800

Family: $2,800

Self-only deductible $2,700 or more in 2019

Self-only: $2,700

Family member: $2,700

Family: $2,700

Self-only: $2,800

Family member: $2,800

Family: $2,800

Note: Plans with out-of-pocket maximums tied to deductibles will also see a proportionate increase to the out-of-pocket maximums.

Out-of-pocket maximum levels

  2019 2020
Self-only $6,750 $6,900
Family   $13,500 $13,800

Note: For 2020 non-grandfathered plans, the Affordable Care Act individual out-of-pocket maximum of $8,150 for family members also applies.

The IRS increase to allowable out-of-pocket maximums won’t impact your employees’ plans. If you’re interested in customizing a plan to take advantage of the new maximums, contact your broker or Kaiser Permanente representative.

Your final 2020 group contract and Evidence of Coverage will include the correct deductible and out-of-pocket maximum amounts.

For more information

If you have any questions, contact your Kaiser Permanente representative.

*IRS Tax forms and instructions (26 CFR 601.602).

Effective January 2020, the IRS is raising minimum deductible levels and allowable out-of-pocket maximums for health savings account (HSA)–qualified plans.