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Change in Minimum Deductible Amounts for HSA-Compatible
HDHPs for 2008
The Treasury Department has issued new guidance for 2008 on the
maximum contribution levels for Health Savings Accounts (HSAs) as
well as minimum deductibles and out-of-pocket spending limits for
HSA-Compatible High Deductible Health Plans (HDHPs).
For 2008, the Treasury has raised the HDHP deductible
amounts:
- Increase in annual HSA contribution.
For 2008, the maximum contribution for an eligible individual
with self-only coverage is $2,900, and the maximum contribution
for an eligible individual with family coverage is $5,800.
- Full HSA contribution regardless of month
individual becomes eligible. Normally, the HSA contribution
is pro rated based on the number of months that an individual
during the year a person was an eligible individual. The new provisions
provide an exception to this rule that will allow individuals
who become covered under an HSA-eligible plan in a month other
than January to make the maximum HSA contribution for the year
based on their coverage in the last month of the year. This eliminates
a common barrier to switching to HSA-eligible coverage.
- The minimum deductible for HDHPs is $1,100 for
self-only coverage and $2,200 for family coverage.
- Catch up contribution for individuals who are 55
or older is increased to $900 in 2008.
New Amounts for Out-of-Pocket Spending on HSA-Compatible
HDHPs:
- The maximum annual out-of-pocket amounts for HDHP
self-coverage increases to $5,600 and the maximum annual out-of-pocket
amount for HDHP family coverage is twice that, $11,200.
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