Amid soaring inflation, annual health savings account contribution limits for next year are increasing in one of the biggest jumps in recent years. For the calendar year 2023, the health savings account contribution limits for an individual with self-only coverage will jump to $3,850—a significant $200 increase from $3,650 for this year, the IRS announced. Last year, the amount climbed just $50 from $3,600 for 2021. For family coverage, the HSA contribution limit jumps to $7,750 next year from $7,300 in 2022.
Related: IRS takes shot at rising inflation with 2023 HSA limits
What it means to HR leaders
With rising healthcare costs and other cost-of-living increases hitting employees’ pocketbooks hard, the HSA contribution limit is welcome news—and a good opportunity for HR and benefits leaders to share positive news to employees, after scores of bad news from the continuing pandemic to soaring inflation and social and racial injustice issues.
Related: 5 employer strategies to help with soaring inflation
Although the change in HSA contribution limits doesn’t begin until 2023—and are often promoted during open enrollment—now is a good time for HR and benefits leaders to relay the information to their employees, and perhaps encourage them to boost their contributions.
“It gives a platform for which the employer can talk about [HSAs] or anything else related to employee benefits and engagement,” says Kevin Robertson, chief revenue officer at HSA Bank, adding that employers should communicate about the HSA limit change both now and during open enrollment. “The reason is because repetition matters. When you say something to somebody, they’re not necessarily going to change their course of action by hearing something once. But it’s the repetition that helps reinforce those messages.”
Plus, if allowed by their employer, employees can change their health savings account contribution levels during any point in the plan year, so workers who aren’t taking advantage of the current 2022 limits may be inclined to do so after employer communication.
Many experts cite the benefits of HSAs for employees, citing their triple tax benefits.