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Important 2022 HSA Updates. What’s New for HSAs in 2022?

Jan 12, 2022 9:15:00 AM

Another new year is upon us. And as they say, the only constant is change.

Speaking of change, the new year marks a number of updates taking effect for health savings accounts.

If you have an HSA, don’t fear. Here are the highlights of what’s changed from last year.

Maximum Annual HSA Contribution Limit Updates for 2022 – HSA Contribution Limits Rise Modestly

For 2022, the IRS has raised the maximum annual HSA contribution limit for individuals and for families a modest amount ($50 for individual coverage, $100 for family coverage). And the HSA catch-up contribution limit for 2022 remains the same as past years, at $1,000 for any HSA accountholder age 55 or older, regardless of coverage type.

  • 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
  • 2022 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)
While these HSA contribution limit changes are minimal, the bigger picture to remember to avoid potential tax issues is that 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).

Also, don’t forget, 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. That means the total sum of all HSA contributions from you, your employer and anyone else who may have contributed to your HSA can’t exceed the maximum annual contribution limit for the given year.

And remember, the more you contribute, the more you stand to save both short and long term—not to mention the better off you’ll be for any expected (or unexpected) healthcare expenses now or in the future. With a fresh year comes a fresh start to make the most of your HSA tax savings.


2022 HSA-Eligible HDHP Annual Out-of-Pocket Maximums Increase Slightly

Along with HSA contribution limits, high-deductible health plan annual out-of-pocket maximums have also increased slightly for HSA-eligible HDHPs in 2022.

In 2021, HSA eligibility required the annual out-of-pocket maximum for individual coverage HDHPs to be $7,000, and $14,000 for family coverage HDHPs.

For 2022, the HDHP annual out-of-pocket maximum limits to ensure HSA eligibility have risen to $7,050 for individuals, and $14,100 for families.


Preventive Care Covered at 100% for HSA Participants Continues to Come into Play

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 current and prospective HSA accountholders in 2022.

Preventive care coverage for chronic conditions can be a potential game-changer for existing HSA users, as well as for anyone managing a chronic condition who may have previously shied away from considering switching to an HDHP with an HSA.

Typically, your HDHP can’t provide benefits for any medical expenses in any given year until you meet your deductible for that year. However, when the expense is for qualified preventive medical care, you’re able to bypass your deductible—meaning you receive immediate benefits for any care that falls under preventive care. This can equal substantial annual savings—especially for those managing chronic medical conditions that are now covered under preventive care.

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.

Preventive care is available in 2022 for HDHP/HSA participants who manage conditions such as:

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

For more details on preventive care specific to HDHP/HSA users, as well as a complete list of diagnoses and qualified preventive care, view IRS Notice 2019-45.

2022 HDHP Deductible Limits for HSA Eligibility Remain Unchanged

To qualify for an HSA, you must be enrolled in an HSA-eligible high-deductible health insurance plan.

In 2021, this meant that your HDHP needed to have a deductible of $1,400 or more for individual coverage, or $2,800 or more for family coverage.

Those amounts have remained static for 2022, at $1,400 for individuals and $2,800 for families.

There you have it—all the HSA update highlights for 2022 in one quick read.

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.

But to truly maximize your HSA, you need the right HSA partner.

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 provide the education, automation and tools you need to make your HSA journey easy and hassle-free.

If you’re an individual looking for the best HSA partner, look no further—open your Bend HSA today and get started working toward an even brighter financial future.

If you’re an employer looking to build an HSA program that works for every employee without adding to your workload or burdening your team, Bend has your back. Sign up now and let’s build your best HSA program together.

And if you’re a broker, financial institution, health plan or other partner out to boost your bottom line and provide a leading-edge HSA offering, connect with us today.

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