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The HSA annual contribution limit for those with individual coverage has increased from $3,500 to $3,550. The family contribution limit has increased from $7,000 to $7,100. The 2020 minimum statutory deductible for an HSA-qualified High Deductible Health Plan is $1,400/Single and $2,800/Family, the 2020 out-of-pocket limit for these plans is $6,900/Single and $13,800/Family. The 2020 HSA Catch-up contribution remains steady at $1,000.
Premium Reimbursement HRA
Employers of any size may establish an HRA that reimburses an employee’s premium for major medical insurance purchased in the individual market (including the Exchange) provided that certain requirements are met. Participants will be permitted to pay the premium difference with pre-tax salary reductions via a Section 125 plan.
“Stand Alone” HRA
Employers who offer group health insurance will be permitted to offer an HRA to reimburse certain excepted benefits (e.g., dental insurance premiums and premiums for short-term health plans) up to an annual maximum benefit of $1,800. As with all HRAs, a limited or unlimited carryover provision may be included. The new rule dovetails perfectly with GDI’s existing HRA services. We are excited to enter this next phase of consumer-directed health care with our clients and broker partners. Updates will be announced as they occur.