A Summary of Certain 2022 Health and Welfare Benefit Plan Limits

May 17, 2021

The IRS released Rev. Proc. 2021-25  on May 10, 2021, containing the 2022 high deductible health plan (HDHP) and health savings account (HSA) annual limits. The U.S. Department of Health & Human Services also recently released its Notice of Benefit and Payment Parameters for 2022, which include the 2022 annual limits for non-grandfathered medical plans subject to the Affordable Care Act (ACA). The limits for 2021 and 2022 are below for comparison purposes.

ACA Limits

Item

2021

2022

Out-of-Pocket Maximum Limit1

Self-only:

$8,550 Family: $17,100

Self-only: $8,700 Family: $17,400

Embedded Self-Only Out- of-Pocket Maximum Limit1


$8,550

 
$8,700

 

HDHP/HSA Limits

Item

2021

2022

 

HDHP Minimum Deductible

Self-only: $1,400 Family: $2,800

Self-only: $1,400 Family: $2,800

Minimum Embedded Ind. Deductible (if used)

$2,800

$2,800

HDHP Out-of-Pocket Maximum Limit

Self-only: $7,000 Family: $14,000

Self-only: $7,050 Family: $14,100

Embedded Self-Only Out- of-Pocket Maximum Limit1

 
$8,550

 
$8,700

HSA Annual Contribution Limit

Self-only: $3,600 Family: $7,200

Self-only: $3,650 Family: $7,300

HSA Catch-up Contribution Limit (age 55 and older)

 $1,000

 $1,000

2022 Maximum Amount for Excepted Benefit HRA

IRS Rev. Proc. 2021-25 also includes the 2022 revised annual contribution limit for excepted benefit HRAs. The maximum annual HRA contribution is $1,800 for plan years that begin in 2022. A Presidential Executive order created excepted benefit HRAs in late 2017. If it meets certain conditions, an excepted benefit HRA is exempt from the Affordable Care Act’s plan design mandates, allowing an employer to offer it on a standalone basis. Excepted benefit HRAs may reimburse general medical expenses and premiums for COBRA, short-term limited duration insurance, and other excepted benefits coverage. Our earlier Alert covers excepted benefit HRAs in more detail.

Still to Come

The 2022 annual limits for health flexible spending accounts, qualified transportation benefits, and adoption assistance will appear later this year.


1 This limit does not apply to plans that remain grandfathered under the ACA

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