Health Benefit Limit Increases For 2023

Every year, the IRS adjusts dollar limits for health and welfare plan contributions & amounts based on the cost-of-living. Typically, these are small increases of $50 or $100. This year, however, the increases are larger than usual to match the high economy-wide inflation we are currently experiencing.

Below is a summary of the contribution changes for 2023. As a reminder, these are the maximum/minimum limits set by the Affordable Care Act; a health plan has full discretion to set its own limits so long as it’s within the bounds of these limitations.

High Deductible Health Plan (HDHP) Limits

2022 Limit2023 LimitChange
Maximum Out-of-Pocket for Individual Coverage$7,050$7,500+ $450
Minimum Deductible to qualify as HDHP (Individual)$1,400$1,500+ $100
Maximum Out-of-Pocket for Family Coverage$14,100$15,000+ $900
Minimum Deductible to qualify as HDHP (Family)$2,800$3,000+ $200

Health Savings Account (HSA) Limits

2022 Limit2023 LimitChange
Maximum Annual Contribution for Individual Coverage$3,650$3,850+ $200
Maximum Annual Contribution for Family Coverage$7,300$7,750+ $450
Maximum Catch-Up Contribution$1,000$1,000

Flexible Spending Account (FSA) Limit

2022 Limit2023 LimitChange
Maximum Annual Contribution (Per Employee)$2,850$3,050+ $200
Maximum Carryover from Prior Year$570$610+ $40
Maximum Tax Exclusion for Dependent Care FSA$5,000$5,000

For reference, here are the two official IRS Revenue Procedures that communicate the changes to limits: