The IRS has announced the inflation-adjusted limits for Health Savings Accounts (HSAs), High-Deductible Health Plans (HDHPs), and excepted-benefit Health Reimbursement Arrangements (HRAs) for 2027. Employers that sponsor these types of plans should begin preparing for the updated limits and consider how the changes may affect payroll systems, enrollment materials, and employee communications.
For 2027, employees enrolled in HSA-qualified high-deductible health plans will be able to contribute up to $4,500 for self-only coverage and $9,000 for family coverage. Individuals age 55 and older may continue to make an additional $1,000 catch-up contribution.
The minimum deductible required for an HSA-qualified HDHP will increase to $1,750 for self-only coverage and $3,500 for family coverage. In addition, the maximum annual out-of-pocket limits for these plans will rise to $8,700 for self-only coverage and $17,400 for family coverage.
Employers offering excepted-benefit HRAs will also see a modest increase in the maximum annual employer contribution, which will rise to $2,250 in 2027.
What should HR teams do now? Although the new limits do not take effect until 2027, employers should review plan designs, coordinate with payroll and benefits administration vendors, and ensure that open enrollment materials and employee communications reflect the updated contribution and plan limits. Early planning can help avoid administrative issues and ensure employees receive accurate information when making their benefit elections.
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This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
