00:00
did you know that the irs already
00:02
announced new contribution limits for
00:04
hsas in:00:06
these changes were actually issued in
00:08
late spring 2021 but flew under the
00:11
radar for a lot of smaller organizations
00:13
that's okay though because i'm here to
00:15
get you caught up in this episode of hr
00:17
party of one we'll talk through the new
00:19
2022 contribution limits for health
00:22
savings accounts and
00:23
max thresholds for high deductible
00:25
health plans
00:26
by the end you'll know exactly how much
00:28
your employees can contribute towards
00:30
these accounts
00:31
and how to effectively communicate these
00:33
changes to your team
00:34
today we'll cover a recap what are hsas
00:38
and hdhps hsa contribution limits for
00:42
2022
00:44
hdhp max limits for:00:47
and how employers should communicate
00:49
changes to employees
00:51
let's get started i always like to start
00:54
our episodes by making sure that all of
00:56
our viewers are on the same page
00:58
whether you're a seasoned hr pro or a
01:01
newbie to the industry it never hurts to
01:03
refresh your memory on some of this
01:05
complex heavy stuff so let's first
01:08
define
01:09
hsas and hdhps a health savings account
01:13
or hsa is a personal bank account with
01:16
significant
01:17
tax advantages that can be used by an
01:19
individual to pay for medical expenses
01:22
typically on costs associated with high
01:24
deductible health insurance plans
01:26
hdhp a wide variety of banking
01:29
institutions around the country
01:31
offer these types of accounts there's a
01:33
limit to the amount that a person
01:35
or family can contribute to their hsa
01:37
each year as determined by the internal
01:40
revenue service when identifying these
01:42
maximums which are adjusted
01:44
or affirmed each year the agency takes
01:47
into account
01:47
changes in the cost of living among a
01:50
number of additional factors
01:53
a high deductible health insurance plan
01:55
or hdhp
01:57
is a type of health care coverage that
01:59
requires participants to spend
02:01
more on upfront costs before the
02:03
insurance company begins to contribute
02:05
to covering expenses
02:07
in many cases people with hdhps spend
02:10
less per month on premiums
02:12
different types of healthcare coverages
02:14
can be considered hdhps
02:16
additionally as i just mentioned hdhps
02:20
can be paired with hsas to help users
02:22
pay for qualified
02:23
medical expenses using tax advantage
02:26
dollars
02:27
there's also something called the
02:28
catch-up contribution
02:30
which unfortunately has nothing to do
02:32
with a condiment
02:34
it's actually a rule that permits people
02:36
55 years and older to contribute an
02:38
additional amount to their hsa each year
02:40
this allows them to catch up on savings
02:43
for medical expenses that typically
02:44
increase as they age
02:46
now that we've laid the groundwork for
02:48
the rest of our episode
02:49
let's talk through these changes first
02:51
up is the hsa
02:52
contribution limits the irs divides
02:56
contribution limits into two categories
02:58
individual limits and family limits in
03:01
most cases the family limit is
03:03
simply double the limit for individuals
03:05
in:03:07
individual contributions were limited to
03:09
3
03:10
600 per year this threshold has been
03:12
raised to
03:14
3650 for 2022
03:16
which means that next year employees who
03:19
own hsas are only permitted to
03:21
contribute up to 3
03:22
650 in these accounts in 2021 family
03:26
contributions were limited to
03:28
7 200 per year this threshold has been
03:31
raised to
03:32
7 300 for 2022 which means that next
03:35
year employees with families who own
03:37
hsas are only allowed to contribute up
03:39
to 7
03:40
300 in these accounts the irs
03:44
opted to keep the catch-up contribution
03:45
the same which remains at one thousand
03:49
next let's talk through hdhp max limits
03:52
once again the irs divides these
03:54
maximums into two different categories
03:57
individual limits and family limits
04:00
in 2021 the hd hp max individual
04:03
out of pocket limit was 7 000. the
04:06
threshold has been raised to
04:08
7050 for 2022. this means that next year
04:12
individuals who have health insurance
04:13
through an hdhp
04:15
will at most be required to spend 7050
04:18
out of pocket
04:19
before their coverage pays for qualified
04:21
medical expenses
04:23
in 2021 the hdhp max family
04:27
out-of-pocket limit was 14
04:28
000. this threshold has been raised to
04:31
14
04:32
100 for 2022. this means that next year
04:35
families who have health insurance
04:36
through an hdhp
04:38
will at most be required to spend 14 100
04:41
out of pocket
04:42
before their coverage pays for
04:44
qualifying expenses
04:45
one thing to note is that according to
04:47
healthcare.gov out-of-pocket expenses
04:49
can include deductibles
04:51
co-payments and coinsurance also
04:54
these limits only apply to in-network
04:56
services
04:57
not out-of-network as you head towards
05:00
the end of q3
05:02
and into q4 you'll want to make sure
05:04
that you're communicating to employees
05:06
as much as possible about their benefits
05:09
because it's common for hsa
05:11
contributions to be taken directly from
05:13
an employee's wages and deposited into
05:15
their account
05:16
they may want to make adjustments to
05:18
their contribution knowing that they're
05:19
permitted to add more in:05:23
we've got you covered use the following
05:25
template to remind employees about the
05:27
updated hsa caps and how they can make
05:29
adjustments to their contributions
05:32
team each year the irs announces
05:35
contribution limits for numerous tax
05:37
provisions
05:38
and health care savings accounts
05:40
sometimes the irs makes adjustments to
05:42
account for inflation and changes in
05:44
cost of living
05:45
in 2022 some contribution limits were
05:48
slightly increased for health savings
05:50
accounts
05:50
hsas see the chart below for reference
05:54
employees who want to update their
05:56
contribution amount can contact
05:58
information here or make adjustments to
06:01
your elections using our
06:02
hris bernie portal if you have any
06:05
questions about hsa contributions or
06:07
other benefits please contact
06:09
contact information here i've included a
06:12
link in this episode description where
06:14
you can find the template to use for
06:15
your own team if interested
06:17
one additional note if your organization
06:19
does offer hsas you should include
06:22
all relevant hsi information in your
06:24
culture guide
06:25
bernie portal's culture guide covers all
06:27
hsa related details in part three
06:30
where we explain how much people can
06:32
contribute how they make contributions
06:35
and when contributions are credited to
06:36
their accounts among other important
06:38
info
06:40
now time for some homework i wanted to
06:43
cover a few additional pointers for you
06:45
to consider
06:45
as you head into prime benefit season
06:48
first
06:49
in general it never hurts to work with
06:51
your team's trusted brokers
06:53
and or third party administrators tpa to
06:56
ensure that all
06:57
benefit systems will accurately reflect
06:59
the new limits
07:01
these people are experts that you can
07:03
and should rely on as you build your
07:05
benefits package for the year
07:07
think about your benefits administration
07:09
process too
07:10
at bernie portal we use our human
07:12
resource information system
07:14
hris also known as bernie portal to make
07:17
adjustments to hsa limits automatically
07:20
it's a comprehensive platform that
07:22
permits employees to select benefits
07:24
track time and provide performance
07:26
management updates
07:27
likewise our team members can use bernie
07:29
portal's intuitive self-service options
07:31
to adjust their hsa contributions
07:33
at any time throughout the year this
07:36
simple and convenient solution
07:38
helps them accommodate any changes to an
07:40
employee's circumstances
07:41
if you haven't already done so now is
07:43
the time to take a look at your benefits
07:46
administration process and
07:47
identify any changes that need to be
07:49
made before open enrollment kicks off
07:51
this fall
07:52
i've included a bernie portal demo in
07:54
this episode description in case you're
07:56
interested in learning more about how
07:57
the system works and how it helps you
07:59
administrate benefits finally keep in
08:02
mind that the irs will likely release
08:04
additional changes to health coverage in
08:06
the coming weeks and months
08:08
we encourage you to stay on top of
08:10
updates to flexible savings accounts
08:12
fsas and more through the end of the
08:14
year and remember
08:16
your role is as strategic as you make it
08:18
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08:24
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