IRS raises limits for 2018 health savings accounts: 4 things to know

The Internal Revenue Service increased the limits for HSAs, according to Forbes.

Here are four things to know.

1. Consumers enrolled in high-deductible health plans can pay for their deductibles by making tax-free contributions to a HSA. The IRS recently increased the limit on HSA contributions for 2018 from $3,400 to $3,450 for individual plans and from $6,750 to $6,900 for family plans.

2. In addition, the IRS lifted the maximum out-of-pocket payments for HSAs from $6,550 to $6,650 for individuals and from $13,100 to $13,300 for family plans, according to the report.

3. Approximately 26 million U.S. policyholders and dependents have an HSA-eligible plan. Under current regulation, only healthcare consumers with annual deductibles of at least $1,300 for individuals or $2,600 for families are eligible for HSAs, according to the IRS.    

4. The Trump administration is looking to expand health savings accounts under the American Health Care Act. 

More articles on payer issues:
Iowa ACA marketplace hangs by thread as last major insurer threatens exit
Failed Aetna merger boosts Humana's Q1 profit
Florida Blue billing glitch causes overcharges for 9,500 members

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