May 20, 2020

The IRS has announced the 2021 inflation-adjusted amounts for health savings accounts (HSAs) and high-deductible health plans (HDHPs). In 2021, tax-deductible/tax-free HSA contribution limits and HDHP in-network out-of-pocket maximums will increase for both self-only and family coverage levels, while HDHP minimum annual deductibles are unchanged. The HSA catch-up contribution limit is set by statute and has remained the same since 2009. The table below shows HSA and HDHP limits for 2019‒2021.

Affordable Care Act (ACA) out-of-pocket maximums are higher. As announced by the Department of Health and Human Services in May 2020, the out-of-pocket maximums for nongrandfathered group health plans under the ACA — $8,550 for self-only and $17,100 for other coverages — are higher than 2021 HDHP out-of-pocket maximums.

Related resources

Non-Mercer resources

• Rev. Proc. 2020-32 (IRS, May 20, 2020)
• US Department of Health and Human Services Notice of Benefit and Payment Parameters for 2021 (Federal Register, May 14, 2020)

Mercer Law & Policy resources

• CARES Act boosts telehealth, makes other health, paid leave changes (March 27, 2020)
• IRS extends income tax filing and HSA contribution deadlines (March 25, 2020)
• COVID-19 spurs IRS relief for HDHPs, state insurance guidance (March 18, 2020)
• Healthcare law and policy outlook for 2020 (Feb. 18, 2020)
• 2020 quick benefit facts (Jan. 27, 2020)
• Summary of 2020 benefit-related cost-of-living adjustments (Jan. 27, 2020)
• Health Savings Account reforms pass key House panel (Nov. 1, 2019)
• IRS expands predeductible preventive care for HSA-qualifying health plans (July 23, 2019)
• Executive order targets healthcare prices quality, and HSA/FSA changes (July 10, 2019)

Other Mercer resources

• Consumer-directed health plans
• HSAs: Saving for, and during, an emergency (May 14, 2020)
• Could free COVID-19 services sabotage your HSA? IRS just weighed in (March 12, 2020)
• HSA enrollment rises even as full-replacement strategies decline (Jan. 7, 2020)
• To treat or to prevent? That is (still) the HSA question (Jan. 7, 2020)
• HSA balances: the more you save, the more you spend — but is that bad? (Sep. 5, 2019)
• HSA vs. 401(k): Help your employees win the battle for account funding (Jan. 31, 2019)