IRS releases HSA and high-deductible health plan limits for 2027

The IRS has announced the inflation-adjusted contributions and related amounts for health savings accounts (HSAs) and HSA-compatible high-deductible health plans (HDHPs) for 2027.

This alert outlines the 2027 HSA limits and offers information on limits imposed by the Affordable Care Act (ACA).

Annual HSA contribution maximum

• $4,500 for single coverage ($100 increase from $4,400)

• $9,000 for family coverage ($250 increase from $8,750)

Annual catch-up contribution maximum

• $1,000 (for HSA-eligible individuals aged 55 or older)

HDHP minimum deductible

• $1,750 for single coverage ($50 increase from $1,700)

• $3,500 for family coverage ($100 increase from $3,400)

Maximum HDHP out-of-pocket

• $8,700 for single coverage ($200 increase from $8,500)

• $17,400 for family coverage ($400 increase from $17,000)

The HDHP rules require that, unless a plan has an individual deductible of at least $3,500 in 2027 (the amount of the family deductible), the individual deductible cannot be embedded. When an annual deductible is non-embedded (aggregate), no benefits are provided for any one family member’s qualifying expenses until the family, as a whole, has incurred enough qualifying expenses to meet the minimum family deductible.

In addition, HDHPs have a different annual out-of-pocket (OOP) limit than the annual limit under the ACA. For 2027, the ACA OOP limit is $12,000 for single coverage and $24,000 for family coverage. HDHPs must use the lower of the OOP limits (ACA limit vs. HDHP limit).

Non-calendar year HDHPs will adopt the 2027 deductible and OOP limits with the start of their new plan year. For example, a HDHP with a July 1 plan year will be subject to the $1,750/$3,500 deductible and $8,700/$17,400 OOP limit on July 1, 2027, which continues through June 30, 2028. However, the HSA contribution limits apply to the calendar year even for non-calendar year plans.

For more compliance insights and additional information, click here (opens a new window) to visit Lockton's ERISA Compliance Consulting page.

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