Health Savings Account (HSA) Limits Announced for 2012

The Internal Revenue Service announced limits for Health Savings Account contributions for 2012 along with HSA qualified plan deductibles. They are as follows:

• Maximum Annual Contribution: Individual/Family: $3,100/$6,250 (Up $50/$100)

• Minimum Annual Plan Deductible: Individual/Family: $1,200/$2,400 (Remains the same)

• Maximum Annual Plan Deductible: Individual/Family: $6,050/$12,100 (Up $100/$200)

Also note, the 2012 maximum limit on out-of-pocket expenses (including items such as deductibles, co-payments, and co-insurance, but not premiums) for individual high deductible health plans is $6,050 (a $100 increase from 2011). The limit for family HDHP coverage is $12,100 (a $200 increase from 2011). Everything else remains as is. 

Remember, you must have a Health Savings Account qualified plan to contribute to an HSA. These plans can be an excellent health insurance program for individuals that wish to keep premiums low while paying for qualified, out of pocket expenses with tax-advantaged dollars. As always, see your Health Insurance professional to help you determine if HSA’s fit your individual situation best.

Special Notes: Please remember, as of January 1, 2011, Over-The-Counter Medications are covered only when accompanied by a Doctor’s prescription. The penalty for using HSA funds for ineligible expenses increased from 10 to 20 percent.