The U. S. Treasury Department recently announced new contribution limits for Health Savings Accounts tied to HSA-qualified medical plans for calendar year 2012.  Vermont employers are encouraged to contact Benefit Design & Strategies LLC at 888-545-9772 with your specific HSA questions.
 

HSA Contribution Limits for 2011 and 2012:

 These "Statutory Limits" represent the maximum amount an HSA accountholder is able to deposit into his or her HSA account during the calendar year based on the level of coverage selected for the year.  The maximum annual deposit levels must factor in contributions from both the employer and employee including an employee's spouse, but exclude the “catch-up” contribution limit for accountholders age 55 and older.

“Catch-Up” Contributions for Older Accountholders

The “catch up” contribution is an amount in addition to the Statutory Limits described above. The accountholder must be 55 years of age or older to be eligible for the added deposit.  For 2011 and 2012 the "catch up" contribution limit is up to $1,000 per year.  Unless there is a change in the law, the maximum “catch-up” contribution will remain at $1,000 in future years.  Regardless of when the accountholder's 55th birthday occurs during the year, an additional deposit of up to $1,000 can be made without needing to prorate the amount unless the HSA health coverage is cancelled before the end of the calendar year.
 
Thus, during 2011 (and the first 3 ½ months of 2012) an accountholder 55 and older can contribute up to a total of $4,050 for single coverage and $7,150 for two-person or family coverage.  The only way for a 55 plus spouse covered by an HSA-qualified medical plan is able to make an extra catch-up contribution is by opening an HSA account in his or her own name.  In this case a total of up to $8,150 can deposited into the two HSA accounts for a couple both covered by HSA medical plans in 2011.

Embedded or Stacked Deductible Feature

No Prorating of Contributions When Starting Up an HSA Plan

Unlike in years prior to 2007, the regulations no longer require any prorating of contributions based upon the month that you begin your HSA medical plan or when you celebrate your 55th birthday to be eligible for the catch-up contribution. However, prorating of contributions is still required should you end your HSA coverage before the end of the calendar year.

Maximum Deductible and Out-of-Pocket Limits for 2012

In this same announcement, the Treasury Department released the 2009 deductible and total out-of-pocket expense limits for HSA-qualified medical plans (the dollar amounts for which the subscriber would be responsible) in order for such a health plan to be in conformance with the Department guidelines:

For PPO (Preferred Provider Organization) plans, these limits apply only to in-network benefits; out-of-network benefits are permitted to have higher deductibles and out-of-pocket maximums. 

Among Vermont health insurance carriers, the lowest deductible currently available for an HSA-Qua;ified plan is $1,500 for single coverage and $3,000 for family coverage; the largest deductible offered is $5,950 and $11,900 respectively during 2011.  

HSA Plans are Becoming More Popular

According America's Health Insurance Plans (AHIP), a Washington trade group, just over 11.4 million people in the U.S. were covered by HSA plans as of January, 2011 (latest figures available), up from 6.8 million in early 2006 .   Companies employing 50 or more employees (and their dependents) had 6.8 million individuals covered by HSA-qualified plans on January 1, 2011.   Vermont is among the top five states with the highest per capita participation rates at 11.4% enrolled in HSA plans.