The dollar limits for Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs) are adjusted for inflation on an annual basis by the IRS (Internal Revenue Service). On May 28, 2019 the IRS announced changes to maximum HSA contributions, minimum HDHP deductible amounts, and maximum out-of-pocket expense limits for HDHPs for the plan years beginning on or after January 1, 2020. Employers who offer the HDHPs should be informed because these new limits may require plan design changes be made for the 2020 plan year. Additionally, if employees are allowed pre-tax HSA contributions, the benefit elections forms must be updated with the 2020 HSA contribution limits.
Contact your Cowden representative for more information on this or other compliance issues.