2025 Brings Changes to HSA and HDHP Limits: What You Need to Know

The IRS has recently announced the updated Health Savings Account (HSA) contribution limits, High-Deductible Health Plan (HDHP) minimum deductibles, and out-of-pocket maximums for 2025. These adjustments are essential for individuals and families planning their healthcare budgets for the coming year. Here’s a detailed recap of what’s changed.

Key Changes for 2025

• HSA Contributions: Allowable contributions will increase by $150 for individuals and $250 for families.
• HDHP Maximum Out-of-Pocket: These limits will rise by $250 for individuals and $500 for families.
• ACA Maximum Out-of-Pocket: In contrast, these will decrease by $250 for individuals and $500 for families.

Contribution and Out-of-Pocket Limits for Health Savings Accounts and High-Deductible Health Plans

HSA Contribution Limit (employer + employee)

• 2024:
  • Individual: $4,150
  • Family: $8,300
• 2025:
  • Individual: $4,300
  • Family: $8,550
• Change:
  • Individual: +$150
  • Family: +$250

HSA Catch-Up Contributions (age 55 and older)

• 2024: $1,000
• 2025: $1,000
• Change: No change

HDHP Minimum Deductibles

• 2024:
  • Individual: $1,600
  • Family: $3,200
• 2025:
  • Individual: $1,650
  • Family: $3,300
• Change:
  • Individual: +$50
  • Family: +$100

HDHP Maximum Out-of-Pocket Amounts (deductibles, co-payments, and other amounts, but not premiums)

• 2024:
  • Individual: $8,050
  • Family: $16,100
• 2025:
  • Individual: $8,300
  • Family: $16,600
• Change:
  • Individual: +$250
  • Family: +$500

ACA Out-of-Pocket Maximums

• 2024:
  • Individual: $9,450
  • Family: $18,900
• 2025:
  • Individual: $9,200
  • Family: $18,400
• Change:
  • Individual: -$250
  • Family: -$500

*Note: Unlike other limits, the HSA catch-up contribution amount is not indexed; any increase would require a statutory change. Catch-up contributions can be made any time during the year in which the HSA participant turns 55. The Affordable Care Act (ACA) limits differ from IRS limits. For further guidance, contact your PGP Representative.

Conclusion: Planning Ahead

Staying informed about these changes is crucial for effective healthcare planning. Adjust your contributions and coverage selections accordingly to maximize your benefits and minimize out-of-pocket costs in 2025.