Employers are starting to review their health plans for mid-year claims for 2020, and planning for a benefits package that provides employees with a rich plan while creating cost controls for 2021. HDHP plans can be useful tools to accomplish both. To help with planning, the IRS recently announced the 2021 Health Saving Account (HSA) contribution limits, High Deductible Health Plan (HDHP) deductible amounts, and out-of-pocket maximums.
An HSA is an account that is paired with an HDHP to allow employees to save for the high deductibles and other out of pocket costs of the HDHP plan. Employers and employees can both contribute to HSAs. Employee contributions are made with pre-tax dollars through payroll. Please speak with your broker or benefits consultant about adding such a benefit.
Here are the details for the 2021 limits:
Plan sponsors should update both payroll and plan administration systems for these increases. And then be sure to update any participant communications such as; open enrollment materials, internal websites, and summary plan descriptions.
Employers Council will continue to post updates as other benefits limits are updated and released for 2021. You can find more information in our Benefit Plan Limitations FYI, or call us with questions.