Minimum Deductible Amounts for HSA-Compatible HDHPs for 2011

The Treasury Department has issued new guidance for 2011 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 2011, the Treasury has raised the HDHP deductible amounts:

• Increase in annual HSA contribution. For 2010, the maximum contribution for an eligible individual with self-only coverage is $3,050, and the maximum contribution for an eligible individual with family coverage is $6,150.
• 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 $1200.00 for self-only coverage and $2,400 for family coverage.
• Catch up contribution for individuals who are 55 or older is $1000 in 2011.

New Amounts for Out-of-Pocket Spending on HSA-Compatible HDHPs:

• The maximum annual out-of-pocket amounts for HDHP self-coverage increases to $5,950 and the maximum annual out-of-pocket amount for HDHP family coverage is twice that, $11,900.