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2012 HSA Contribution Rules Set

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2012 HSA Contribution Rules Set

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Under the PPACA passed into law by Congress in 2010, Congress created an essential health benefits package that provides a comprehensive set of services and covers at least 60% of the actuarial value of the covered benefits. Those covered benefits are also subject to limits set forth by Congress with an annual cost-sharing of the HSA limits ($5,950/individual and $11,900/family in 2010), and is not more extensive than the typical employer plan. Thereafter the PPACA requires the Secretary to define and annually update the benefit package through a transparent and public process.

For calendar year 2012, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,100, up $50 from $3,050 in 2011.

For calendar year 2012, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,250. This is up from $6,150 for 2011 calendar year.

High deductible health plan. For calendar year 2012, a "high deductible health plan" is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,200 (no change from calendar year 2011) for self-only coverage or $2,400 (no change from calendar year 2011) for family coverage, and the 2012 catch-up contributions must remain at $1,000. The annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) must not exceed $6,050 for self-only coverage or $12,100 for family coverage. For 2011 those numbers were $5950 for self-only coverage and $11,900 for family coverage.

For more details and health plan information on Health Savings Accounts go to the HSA channel at insurance guide website. The HSA channel provides a detailed history of health savings accounts, a look at tax implications, and a review of HSA-related regulations, among other articles housed there.

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