“For all those hoping HSA’s get expanded, looks like the government is moving in the opposite direction. On March 5, 2018, the IRS released Revenue Procedure 2018-18 (as part of Bulletin 2018-10). Due to changes made in the Tax Cuts and Jobs Act, certain adjustments needed to be made to inflation amounts. This includes a reduction in the maximum family HSA contribution for those with family coverage under an HDHP from $6,900 to a new limit of $6,850 for calendar year 2018. The single contribution limit remains unchanged at $3,450 per year. This reduction affects employees participating in an HSA Plan who have elected to contribute more than $6,850 for family coverage in 2018.” ~D.C., Employee Healthcare Strategist; March 7, 2018
Revenue Procedure 2018-18
SECTION 4. 2018 INFLATION ADJUSTED AMOUNTS FOR HEALTH SAVINGS ACCOUNTS UNDER § 223
MARCH 5, 2018 – Annual contribution limitation. For calendar year 2018, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,450. For calendar year 2018, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,850.
High deductible health plan. For calendar year 2018, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,650 for self-only coverage or $13,300 for family coverage.
“Main problem I see with this proposed legislation is that there is no provision for HSA use to cover the cost of membership to Direct Primary Care or Concierge medical practices.” ~J.C.; March 7, 2018; LinkedIn Comment