The Washington Report
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June 5, 2019
Health
IRS Announces 2020 HSA Limits
On May 28, 2019, the Internal Revenue Service (IRS) announced in Revenue Procedure 2019-25 the 2020 inflation-adjusted amounts for Health Savings Accounts (HSAs). For calendar year 2020, the annual limitation on deductions for an individual with self-only coverage under a high-deductible health plan is $3,550. The annual limitation on deductions for an individual with family coverage under a high-deductible health plan is $7,100.
For calendar year 2020, a “high-deductible health plan” is a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage. The annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) cannot exceed $6,900 for self-only coverage or $13,800 for family coverage.
See the Publications section below for two Aon bulletins, one on the 2020 HSA limits and the other on both the 2020 HSA limits and the HHS 2020 benefit and payment parameters.
Revenue Procedure 2019-25 is available here.
Aon Publications
New HHS Rule Narrows Scope of ACA Nondiscrimination Rules
The U.S. Department of Health and Human Services (HHS) has proposed a new rule implementing the nondiscrimination rules of Section 1557 of the Affordable Care Act (ACA). If finalized in its current form, the proposed rule would revise the scope of the ACA’s nondiscrimination rules and impose fewer requirements on employer group health plans.
The Aon bulletin is available here.
IRS Issues 2020 HSA Limits
On May 28, 2019, the Internal Revenue Service (IRS) issued inflation-adjusted limits for contributions to a health savings account (HSA) for calendar year 2020 (Revenue Procedure 2019-25). In addition, the IRS provided revised minimum deductible amounts and maximum out-of-pocket limits.
The Aon bulletin, which contains a chart providing the limits for calendar years 2018 through 2020, is available here.
A Plan Has to Know Its Limitations: HHS Issues 2020 Benefit and Payment Parameters While IRS Announces 2020 HSA Limits
On April 25, 2019, HHS published its annual Notice of Benefit and Payment Parameters under the ACA, setting the maximum amount of out-of-pocket (OOP) costs that a plan can require participants to pay each year.
Separately, the IRS announced on May 28 the 2020 limits for HSA contributions for individuals, high-deductible health plan (HDHP) minimum deductibles, and HDHP OOP maximums for HDHPs in 2020 (Revenue Procedure 2019-25).
The Aon bulletin is available here.