Summary At A Glance
- For 2027, employees enrolled in an HDHP may contribute up to $4,500 for self-only coverage and $9,000 for family coverage, reflecting modest increases from 2026.
- To qualify as an HDHP in 2027, plans must have minimum deductibles of $1,750 (self-only) and $3,500 (family), with maximum out-of-pocket limits of $8,700 and $17,400, respectively.
- Employers will need to review 2027 enrollment materials, benefit communications, handbook language, and plan documents to ensure all HSA, HDHP, and HRA limits reflect the updated IRS amounts before open enrollment.
The Internal Revenue Service (IRS) has announced the inflation-adjusted amounts for Health Savings Accounts (HSAs), High-Deductible Health Plans (HDHPs), and Health Reimbursement Accounts (HRAs) for 2027, as determined under the Internal Revenue Code.
Key updates for 2027 include:
HSA Contribution Limits
- For self-only coverage under an HDHP, the annual HSA contribution limit is $4,500, an increase from $4,400 in 2026.
- For family coverage under an HDHP, the annual HSA contribution limit is $9,000, up from $8,750 in 2026.
HDHP Definition for Plan Years Beginning in 2027
- An HDHP is defined as a health plan with an annual deductible of no less than $1,750 for self-only coverage or $3,500 for family coverage.
- Annual out-of-pocket expenses, including deductibles, co-payments, and other amounts (excluding premiums), must not exceed $8,700 for self-only coverage or $17,400 for family coverage.
Excepted-Benefit HRA Limit
- The excepted-benefit health reimbursement arrangement limit will be $2,250 in 2027, an increase from $2,200 in 2026.
Recommended Next Steps for Employers
Employers that offer company-sponsored HSAs, HDHPs, or HRAs should ensure the updated 2027 limits are clearly communicated in all enrollment materials provided to eligible plan participants. If health and welfare policies are included in the employee handbook, the updated dollar amounts should also be accurately reflected in those policies.
