IRS Announces 2025 HSA Contribution Limits

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The IRS has recently released the contribution limits for Health Savings Accounts (HSAs) for 2025. In 2024 we saw a significant increase, mainly in response to continued pressures from inflation. In the upcoming year, we will see another adjustment upwards, yet smaller than the 2024 increases.

For 2025, individuals with self-only coverage can contribute up to $4,300 to their HSAs, up from $4,150 in 2024. Family plans can contribute up to $8,550, up from $8,300 in 2024. This change reflects a steady acknowledgment of the need for greater financial flexibility in managing health expenses.

The IRS hasn’t released the 2025 catch-up contribution yet for those age 55 and older. It is currently set at $1,000 for 2024, unchanged from 2023.

According to Fidelity Investments’ 2023 Retiree Health Care Cost Estimate, a 65-year-old retiring this year can expect to spend an average of $157,500, or $315,000 per couple, in health care and medical expenses throughout retirement. Understanding how to save and invest with an HSA plan is key to helping you plan for future expected and unexpected medical expenses.

If you are in an HSA and have questions about how to get the most out of the plan, CalCPA Health can help answer your questions. Approximately 45% of CalCPA Health medical subscribers are enrolled in a Health Savings Account. Education is key and CalCPA Health is here to help – whether you are in one of our HSA plans or not. We are a resource for you – feel free to ask questions by emailing info@calcpahealth.com.

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2024 Contribution Limits for Health Savings Accounts (HSA) Announced

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The Internal Revenue Service released the annual maximum 2024 contribution limits for HSAs under high deductible health plans (HDHPs). For 2024, we will see the largest jump in recent years for contribution limits – mainly due to continued high inflation. The annual limit on HSA contributions for an individual will be $4,150 (up from $3,850 in 2023) and $8,300 for family coverage (up from $7,750 in 2023).  HSA “catch-up” contribution for participants 55 and older, can contribute an extra $1,000 to their HSA, which is the current amount in place for 2023.

Effective January 1, 2024 – Contribution Limits for Health Savings Accounts

Tax Year Individual Coverage Limit Family Coverage Limit
2024 $4,150 $8,300
2023 $3,850 $7,750
2022 $3,650 $7,300
At age 55, members are allowed to contribute an additional $1,000 

What is a HSA? It is a tax-advantaged account, paired with a high-deductible health insurance plan (HDHP), that allows you to save pre-tax dollars for future qualified medical expenses. You can invest the funds in the HSA account tax-free and grow your savings. You own the account, it travels with you if you change jobs, change your health plan, or retire.

 

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Important Health Plan Information

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by Ron Lang, CEO of CalCPA Health

This time of the year, with most firms renewing their employee benefit plans, there is a big uptick in questions regarding managing health plans. For CalCPA members, CalCPA Health is an available resource; our tag line is “we answer questions for your firm, your clients and your family” (or at least try to answer anyway).

Health plans are a unique blend of Internal Revenue Service, Department of Health and Human Services, Department of Labor, California Department of Insurance, and other California agencies regulations. Buried in each of these, is the Affordable Care Act’s (ACA) code. Because of this complexity and liability, when providing answers and insights we always must disclose that we do not provide tax or legal advice (lol).

 

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Anthem Members Impacted by The California Wildfires

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We want our members and emergency personnel dealing with the damage caused by the California wildfires to know Anthem Blue Cross is here to help. If you need direct assistance with finding available care providers, prescription refills or replacements, and/or any other health insurance related matters, please call 1-888-831-2238, Monday through Friday between 8:00 a.m. and 5:00 p.m., and weekends, from 10 a.m. to 2:00 p.m.

If you live in Butte, Los Angeles or Ventura counties, we’d like you to know we’ve made temporary changes to you benefits to help you get the care you need:

  • Relaxing time limits for prior authorization, pre-certification and referral requirements.
  • Suspending early refill limits for prescriptions.
  • Allowing replacement of medical equipment or supplies.
  • Extending filing deadlines for claims.
These medical and pharmacy guidelines are effective from November 9, 2018 until December 9, 2018, unless further extended.
They apply to members covered by Anthem’s employer group, individual plans and family plans, Anthem’s Medicare Advantage, Medicare Supplement, and Medicare Part D plans in the three impacted counties. These relaxed benefits do not apply to Federal Employees Health Benefits Program as that program has specific guidelines.
Anthem Resources for Assistance and Support
Additionally, Anthem’s EAP provides resources and support services to help with emotionally stressful situations as well as with financial and legal concerns. Anthem’s EAP tools will be offered at no cost and will be available 24/7 at 877-208-8240 through the EAP crisis line or by visiting anthemeap.com and using the login code “cawildfires.”
Free, Unlimited Online Medical and Psychology Visits Through December 31st
Consumers who need medical care can also access LiveHealth Online, Anthem’s 24/7 telehealth service, via the LiveHealth Online app and website at livehealthonline.com. LiveHealth Online offers video visits with U.S.-based board certified doctors on a mobile device or computer from anywhere for non-emergency health conditions. Anyone in California who downloads the mobile app or visits livehealthonline.com and registers will be able to visit with a doctor for free by selecting the “Help for Wildfires Medical” practice. The free visit offer will be available through December 31, 2018.
As you are working through these difficult circumstances, there are a number of organizations that can help. Contact FEMA to learn more about assistance available to the communities affected by the wildfires.
The American Red Cross is another good source of information and support resources and The Anthem Foundation is a $1 million-level member of the Annual Disaster Giving Program, providing grants to organizations such as AmeriCares, Direct Relief and Portlight Strategies, Inc. to support impacted residents.
We are committed to helping you access the healthcare you need and are hearts go out to you during these challenging times.
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New California Law SB 1375 – Affects Many Small Firm’s Group Health Insurance

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The new California Law, SB 1375, was signed by Governor Brown on September 22, 2018 and will affect many small firm’s group health insurance. SB 1375 changes the Health Insurance Code to reclassify certain small employer groups as individuals. The affected firms will have to obtain individual health insurance in 2019, rather than the small employer group plans they currently have. Individual health insurance is typically more expensive with less provider network and benefit plan choices than small group plan offerings.

Fortunately, for CalCPA members and their firms, CalCPA Health received certain exemptions from SB 1375, which generally allows us to treat the affected firms as groups, and not as individuals. Commercial carriers (Blue Shield, UnitedHealthcare, Anthem, etc.,) must comply with the new regulations and reclassify these groups as individuals.

SB 1375 defines groups that consist entirely of owners/partners, and/or W-2 employees that are spouses of owner/partners, as not eligible for group health coverage. Even though these entities may be classified as employer/employees by other regulations, (e.g. Workers’ Comp, payroll tax, etc.,) SB 1375 specifically states they do not qualify for group health coverage and may only purchase individual plans.

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