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 Limit | 2023 Limit | Change | |
| 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 Limit | 2023 Limit | Change | |
| 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 Limit | 2023 Limit | Change | |
| 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:
- Procedure 2022-24, containing changes to HDHPs and HSAs at Section 2.01.
- Procedure 2022-38, containing changes to FSAs at Section 3.16.
