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2023 HSA Contribution Limits Prove HSAs are an Important Long-Term Saving Tool

May 18, 2022 8:00:00 AM

In January of this year, we wrote a blog covering important HSA updates for 2022.

Now, although we’re only into the second quarter of 2022, the IRS has already announced updates to HSA contribution limits for 2023. Unlike years past, HSA accountholders will see a more significant hike in their ability to contribute to their HSAs next year.

And while fueled in part by the recent surge in inflation, the new HSA contribution limits for 2023 also mirror a steady trend of more and more individuals and families alike leveraging their health savings accounts as a critical element of their long-term saving strategy—not merely as a 12-month healthcare spending account.

Maximum Annual HSA Contribution Limit Updates for 2023 – HSA Contribution Limits Rise Significantly Versus Past Years

For 2022, the IRS raised the maximum annual HSA contribution limit for individuals and for families a modest amount—about 1.4%—netting a $50 increase for individual coverage and a $100 increase for family coverage.

But for 2023, the new HSA contribution limits mark a roughly 5.5% increase. Those with individual coverage will see a $200 bump, while those with family coverage will see a $450 spike.

While contribution limits for both coverage types will increase, the HSA catch-up contribution limit for 2023 remains static, at $1,000 for any HSA accountholder age 55 or older, regardless of coverage type.

Here’s a quick year-over-year comparison:

  • 2021 Maximum annual HSA contribution limits
    • $3,600 for individuals
    • $7,200 for families
  • 2022 Maximum annual HSA contribution limits
    • $3,650 for individuals
    • $7,300 for families
  • 2023 Maximum annual HSA contribution limits
    • $3,850 for individuals
    • $7,750 for families
  • 2023 HSA catch-up contribution limit
    • Any HSA accountholder age 55 or older is eligible to utilize an annual HSA catch-up contribution limit of $1,000 to help grow their account beyond the standard maximum annual HSA contribution limit for either coverage level (individual or family)

When reviewing HSA contribution limit changes, remember two key points that hold true both for the past, current and future year:

  1. You can’t exceed the maximum annual contribution limit for the specific type of coverage you have—individual or family—as well as your age (if you can take advantage of the catch-up contribution)
  2. The HSA contribution limit set by the IRS includes all contributions made to your health savings account for a given tax year from all sources, including you, your employer and anyone else who may contribute to your HSA

2023 HSA-Eligible HDHP Annual Minimum Deductibles and Out-of-Pocket Maximums Also Increase

Along with HSA contribution limits, HSA-eligible high-deductible health plan annual minimum deductibles and out-of-pocket maximums will also increase for 2023.

In 2022, the HDHP minimum deductible to qualify for an HSA is $1,400 for self-only coverage, and $2,800 for family coverage.

For 2023, the self-only minimum deductible jumps $100, while the family minimum deductible rises $200, to $1,500 and $3,000, respectively.

And for out-of-pocket maximums, in 2022, HSA eligibility requires the annual out-of-pocket maximum for individual coverage HDHPs to be $7,050, and $14,100 for family coverage HDHPs.

For 2023, the HDHP annual out-of-pocket maximum limits to ensure HSA eligibility have risen to $7,500 for individuals, and $15,000 for families, marking a jump of $450 and $900, respectively.

Run the Numbers and Don’t Forget About Preventive Care Covered at 100% for HSA Participants

While the significant rise in HSA contribution limits is a positive across the board, the increase in minimum deductibles and out-of-pocket maximums could be seen as detractors to those already with HSA-eligible HDHP coverage, or those considering making the switch from a traditional health insurance plan.

Year-over-year increases aside, it’s important to take a closer look at HDHP deductibles and out-of-pocket maximums. When you run the numbers, more often than not, you’ll find that even with higher upfront deductibles and out-of-pocket maximums, you’ll still end up saving in your overall healthcare expenses.

It’s equally important to understand how preventive care can help you save even more with an HDHP and HSA.

In 2019, the IRS made key expansions to the list of eligible preventive care for HSA participants, including coverage for many chronic conditions. This continues to come into play both for existing HSA users, as well as for anyone managing a chronic condition who may have previously opted to not make the switch to an HDHP with an HSA.

Preventive care is often misunderstood or overlooked when considering healthcare coverage. But it shouldn’t be. It’s critical to be informed and understand how preventive care fits into the healthcare puzzle—especially for those with or considering HDHP coverage paired with an HSA.

Simply put, preventive care is covered immediately upfront at 100%. No deductible. No copay. As an HDHP/HSA user, you receive preventive care at no cost to you.

Also important to note, it’s not just medical care services that can be covered as preventive—it’s also items purchased like prescription drugs.

Along with a variety of wellness visits, routine vaccinations, bloodwork and other services, preventive care is also available for HDHP/HSA participants who manage chronic conditions like:

  • Asthma
  • Bleeding disorders
  • Congestive heart failure
  • Coronary artery disease
  • Diabetes
  • Heart disease
  • Hypertension
  • Liver disease
  • Osteopenia
  • Osteoporosis


Another important element of running the HDHP/HSA numbers is planning your HSA contributions.

Now more than ever, you need to be able to quickly see how different contribution strategies can impact both your short and long-term financial wellness.

With a Bend HSA, you can leverage an industry-exclusive Contribution Planner to help you quickly and easily see how different contribution amounts impact both your ability to cover current healthcare expenses, as well as how those contributions could impact your long-term financial health and ability to cover healthcare expenses into retirement.

With Bend’s Contribution Planner, finding your ideal HSA contribution strategy is easy as 1, 2, 3.

Because remember, HSAs aren’t just for short-term spending. Their unique saving and investment elements can help anyone level up their retirement planning.

Take Control of Your Healthcare Now and into the Future with Help from Bend

While we’re all facing a variety of uncertainties, it’s important to remember pairing an HSA with an eligible HDHP is a smart and savvy way to save money both short and long term, all while helping you work toward better overall financial health—no matter what the future might hold.

And with a Bend HSA, we make it easy for you to take control of your healthcare costs and make the most of your HSA by providing the smartest, most user friendly HSA platform on the market. We’re here to be your partner on every step of your HSA journey.

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