June 1, 2020
2021 | 2020 | Change | |
Annual HSA Contribution Limit(employer and employee) | Self-only: $3,600 Family: $7,200 | Self-only: $3,550 Family: $7,100 | Self-only: +$50 Family: +$100 |
HSA catch-up contributions(age 55 or older) | $1,000 | $1,000 | No change |
Minimum Annual HDHP Deductible | Self-only: $1,400 Family: $2,800 | Self-only: $1,400 Family: $2,800 | No change |
Maximum Out-of-Pocket for HDHP(deductibles, co-payment & other amounts except premiums) | Self-only: $7,000 Family: $14,000 | Self-only: $6,900 Family: $13,800 | Self-only: +$100 Family: +$200 |
Out-of-Pocket Limits Applicable to Non-Grandfathered Plans
The ACA’s out-of-pocket limits for in-network essential health benefits have also been announced and have increased for 2021.
2021 | 2020 | Change | |
ACA Maximum Out-of-Pocket | Self-only: $8,550Family: $17,100 | Self-only: $8,150Family: $16,300 | Self-only: +$400Family: +$800 |
Note that all non-grandfathered group health plans must contain an embedded individual out-of-pocket limit within family coverage, if the family out-of-pocket limit is above $8,550 (2021 plan years) or $8,150 (2020 plan years). Exceptions to the ACA’s out-of-pocket limit rule are available for certain small group plans eligible for transition relief (referred to as “Grandmothered” plans). A one-year extension of transition relief was announced on January 31, extending the transition relief to policy years beginning on or before October 1, 2021, provided that all policies end by December 31, 2022. (This transition relief has been extended each year since the initial announcement on November 14, 2013.)
Next Steps for Employers
As employers prepare for the 2021 plan year, they should keep in mind the following rules and ensure that any plan materials and participant communications reflect the new limits:
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About the Authors. This alert was prepared for The Fedeli Group by Marathas Barrow Weatherhead Lent LLP, a national law firm with recognized experts on the Affordable Care Act. Contact Peter Marathas or Stacy Barrow at pm*******@ma*******.com or sb*****@ma*******.com .
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