The IRS has released updated limits and rules for Health Savings Accounts (HSAs), high-deductible health plans (HDHPs), Direct Primary Care Service Arrangements (DPCSAs), and excepted benefit HRAs.

HSA contribution limits:

Individual coverage: up to $4,500 per year. Family coverage: up to $9,000 per year.

High-deductible health plan requirements:

To qualify for an HSA, plans must meet these minimums:

Individual deductible: at least $1,750. Family deductible: at least $3,500.

Individual out-of-pocket maximum (deductibles, co-payments, and other amounts, but not premiums) must not exceed $8,700. Family out-of-pocket maximum: up to $17,400.

Direct Primary Care Service Arrangements (DPCSAs):

A DPCSA is not treated as a health plan for HSA eligibility purposes if the aggregate monthly fees for all DPCSAs for the individual do not exceed $150, or $300 if the DPCSA covers more than one individual.

Employer Takeaways:

• Review your current health plan to ensure it meets updated requirements for 2027
• Adjust HSA contributions if needed
• Confirm any direct primary care arrangements stay within the allowable limits

This alert is for general informational purposes only and is not legal advice. If legal advice, counsel, or representation is needed, the services of a legal professional should be sought.