Can a High-Deductible Health Plan Benefit your Company?
The Internal Revenue Service (IRS) has announced an increase to the allowable maximum contribution individuals can make to their health savings accounts (HSA) in 2016. Created in 2003, HSAs allow individuals covered by high-deductible health plans (HDHP) to receive tax-preferred treatment of money saved for medical expenses.
For calendar year 2016, the annual limitation of deductions for an individual with self-only coverage will remain at $3,350. The limit for an individual with family coverage under an HDHP will increase $100 from $6,650 to $6,750.
The IRS defines an HDHP as a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,550 for self-only coverage or $13,100 for family coverage. Maximum out-of-pocket expenses increase in 2016 for both individual and family coverage, at $100 for individuals and $200 for families.
Are you interested in learning more about the tax advantages of implementing an HDHP at your company? Marsh & McLennan Agency formerly Benefits Resource Group will help ensure your health care dollars are spent productively. HDHPs offer an attractive way to combat high health care benefit costs; we can help you understand how they work and how they may provide cost savings for your company. We encourage you to contact Ross W. Farro. Ross is a Principal with Marsh & McLennan Agency formerly Benefits Resource Group and specializes in assisting clients with their Health and Wellness needs. You can contact Ross by phone at 216-393-1820 or by email at email@example.com.