As part of a package of benefits, employers offer health reimbursement arrangements or health savings accounts to assist employees in managing their out-of-pocket healthcare expenses. But because the cost of living, and the cost of healthcare in particular can rise over time, contribution limits to those accounts also change. Due to inflation and changing costs, here’s what we know about contribution limits to HRAs and HSAs next year.
HRAs are designed to assist employees in managing their healthcare choices and expenses. Funds can be used to cover things like COBRA premiums, disability insurance, critical illness insurance, or dental and vision insurance. This provides a valuable benefit to workers who then use the money in a way that best suits their needs. For 2022, HRA contribution limits will remain at the current level of $1,800 for the year.
However, HSA contribution limits will be changing. Health savings accounts are designed to allow employees to set aside pre-tax dollars, to cover out-of-pocket expenses for their own healthcare. These plans are paired with high-deductible, lower-premium healthcare plans, and allow for greater responsibility over one’s own healthcare choices. Since the cost of healthcare is expected to rise next year, the contribution limit for HSAs will rise to keep pace with that inflation. However, deductibles for their healthcare plans will remain the same.
Check the chart below to see how contribution limits for HSAs will change next year:
If you are an employer looking to provide your employees with the benefits package that best suits their needs, give us a call and we’d be happy to explain how these programs work. Or, if you need help with any other aspect of your group benefits plan, just let us know. We’re here to provide assistance.