Tuesday, December 18, 2007

HSA Raises Contribution Limits for SMBs

Great news for all those SMBs with employee HSA account holdders, the 2008 HSA Contribution and Out-of-Pocket Maximums and High Deductible Health Plan (HDHP) Minimums have been raised.

The new Maximum Contribution for 2008:
* Increases the maximum contribution to $2,900 (individual coverage) $5,800 (family coverage) regardless of deductible and number of months in the high deductible health plan.

* Catch-up contribution (age 55 and over): $900 for 2008
As an FYI, funds contributed in excess of $6,700 ($5,800 + $900 catch-up) attributable to 2008 will be rejected for "over contribution." The comparable level is $6,450 ($5,650 + $800 catch-up) for 2007.

Maximum out-of-pocket - increases to $5,600 for individual coverage (up from $5,500) and to $11,200 for family coverage (up from $11,000) for 2007
Minimum deductible for qualified high deductible health plans remains at $1,100 for individual coverage and at $2,200 for family coverage

Read the HSA Case Study

1 comment:

Andy Wendt said...

Here is a comment to chew on: We just switched to his an HSA. Prior to the switch we were with Anthem and traditional coverage when I received a CAT scan. My portion after the insurance was $550. After the switch to the HSA my co-worker received a CAT scan from the same facility. He was now on the HSA. His bill was $650 of which over $300 was deposited to his personal HAS that month by his employer. So his real expense for the CAT scan was offset by $300 by while in my scenario the employer’s contribution of $300 went entirely to Anthem.