Tag: High Deductible Health Plans

IRS sets 2016 Health Savings Account contribution limits

Editor note: This article was originally published on May 5, 2015 by Business Insurance and can be found here.

The maximum contributions that can be made to health savings accounts in 2016 will increase $100 for families, but remain unchanged for individuals.

The Internal Revenue Service announced Monday that the maximum contribution that can be made next year to an HSA linked to a high-deductible plan will be $6,750 for employees with family coverage, up from $6,650, while the maximum contribution for those with single coverage will remain at $3,350.

However, maximum out-of-pocket expenses will increase in 2016 for both categories.

Maximum out-of-pocket employee expense, including deductibles, will rise $100 next year to $6,550 for single coverage, and increase $200 next year to $13,100 for family coverage.

For 2016, a high-deductible health plan is defined as a one with an annual deductible of least $1,300 for self-only coverage and $2,600 for family coverage.

Increases in the HSA limits, which are detailed in Revenue Procedure 2015-30, are tied to changes in the cost of living.

Learn more about Health Savings Accounts.

HSAs: Client Success Story – LA Mission

In our latest video, the Director of Human Resources at the Los Angeles Mission discusses the benefits they’ve seen from their Health Savings Account program with Sterling Administration.

Learn more about HSAs and Sterling Administration.

Watch HSAs: Client Success Story – Northern California Teamsters Trust here.

Employers turn to high-deductible health plans as benefit option: Survey

Editor note: This article originally appeared here.

Nearly half of small and midsize employers will include a high-deductible health plan among their group health benefit options by 2015, according to a survey by Itasca, Ill.-based Arthur J. Gallagher & Co.

High-deductible health plans were the second-most common coverage offering among the 957 employers polled in Gallagher’s “2013 Benefit Strategy and Benchmarking Survey,” with 34% currently offering high-deductible plans to their employees alongside more traditional plan types.

Among employers not currently offering coverage through an HDHP — also known as a consumer-driven health plan — nearly 23% said they plan to do so by next year, according to an executive summary of the survey released Thursday.

Seventy-seven percent of employers offer coverage through a preferred provider organization, while 32% offer a health management organization plan, according to the survey.

More than 92% of the employers polled in Gallagher’s study had fewer than 5,000 full-time workers, according to a spokesman for the brokerage, and 75% had fewer than 1,000 workers. The full study results will be published Monday.

Drive to control costs

The prevalence of small and midsize employers concerned about controlling health care costs in the near term — with 80% of all employers in the survey ranking it among their top three challenges for 2014 —likely is a key driver in the growing interest in high-deductible plan designs.

“Finding the right balance between maintaining an engaged workforce and effectively managing the total cost of that workforce was a key focus for all organizations,” Sean Schubert, Gallagher’s vice president of sales and marketing, said in a statement.

While they appear to be gaining in popularity as a coverage option among employers, employee enrollment in HDHPs remained relatively low in 2013, according to the study. Less than 15% of employers polled said their HDHP was their most popular plan offering, compared with 58% that said their PPO option drew the greatest number of enrollees.

About one in five employers said their HMO was their most popular plan among their workers.

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