Compliance Stuff

The long-awaited health savings account (HSA) and high-deductible health plan (HDHP) figures for 2027 have been announced. Employers have been waiting, as the announcement usually comes in early May. The annual limit on HSA contributions for self-only coverage in 2027 will be $4,500, a 2.3% increase from the $4,400 limit in 2026, the IRS announced May 29 . F or family coverage, the HSA contribution limit will jump to $9,000 next year, up 2.9% from $8,750 in 2026. Meanwhile, for 2027, an HDHP must have a deductible of at least $1,750 for self-only coverage, up from $1,700 in 2026, or $3,500 for family coverage, up from $3,400 in 2026. Annual out-of-pocket expense maximums (deductibles, co-payments, and other amounts, but not premiums) cannot exceed $8,700 for self-only coverage in 2027, up from $8,500 in 2026, or $17,400 for family coverage, up from $17,000 in 2026.  The IRS also announced that the excepted-benefit health reimbursement arrangement limit will be $2,250, up from $2,20...

On March 14, 2026, the West Virginia Legislature passed a  bill  (House Bill (HB) 4009) to allow employers to contribute to a worker’s portable benefit account while still classifying that worker as an independent contractor. The bill is likely to be especially impactful for rideshare and food delivery companies that rely heavily on gig workers for app-based services. 0:00 4:27 Quick Hits West Virginia legislators passed a bill (HB 4009) that permits companies to provide portable benefit accounts for workers without needing to classify those workers as employees. Governor Patrick Morrisey has not signed or vetoed the bill yet. If enacted, the bill would take e ffect for taxable years starting on January 1, 2026, or later. Portable benefits are benefits that stay with the individual and accumulate based on hours worked or a percentage of transaction fees. They can function similar to a 401(k), paid time off program, or health savings account (HSA). Instead of benefits offered...

Overview The world of health benefits is constantly evolving. Recent policy shifts and legislative developments are expected to impact the economic landscape and have significant implications for employer plan sponsors, insurers, third-party administrators (TPAs), and individuals covered by employer-sponsored health plans. This article provides an overview of the current landscape, highlighting key updates and strategic considerations for navigating these changes. In Depth Recent legislative updates Telehealth HDHP safe harbor:   Retroactive to January 1, 2025, high-deductible health plans (HDHPs) may continue to cover telehealth and other remote care services without making participants ineligible for health savings account (HSA) contributions. Section 1557 and gender-affirming care:   Federal rules may soon reduce healthcare nondiscrimination protections that apply to gender-affirming care. State policies vary widely. Some require coverage while others restrict it, dependin...

  The Internal Revenue Service (IRS) has taken the position that employers may incorporate health savings accounts (HSAs) and student loan payments among the allocation options for employer contributions offered outside of cafeteria plans. Quick Hits Employers may include HSAs and student loan payments among their employees’ allocation choices for employer contributions to benefit plan s. Some employers provide flexibility with regard to the allocation of their employer contributions among benefit plans as a way to enhance recruiting and retention. New contribution limits will kick in for HSAs and health reimbursement arrangements (HRAs) for 2025. Many employers and HR professionals have finished the open enrollment period for the 2025 plan year and are beginning t o make the next strategic decisions about their benefit plans for the future. A recent clarification in IRS policy permits employers to offer a broader range of options for allocations of employer contributions among ben...

  The annual limit on health savings account (HSA) contributions for self-only coverage in 2025 will be $4,300, a 3.6 percent increase from the $4,150 limit in 2024, the IRS announced today. For family coverage, the HSA contribution limit will jump to $8,550, up 3 percent from $8,300 in 2024. The jump in the contribution limits is significantly less than the roughly 7 percent increase seen from 2023 to 2024. SHRM’s 2023 Employee Benefits Survey found that 64 percent of employer respondents offer a high-deductible health plan that is linked with a savings or spending account, like an HSA, and 63 percent of those employers offer contributions to their employees’ accounts. The average individual-only annual contribution is $1,012, according to SHRM, while the average family annual contribution is $1,585. Source(s): SHRM , received May 9, 2024. IRS , accessed on May 16, 2024.