The IRS has released Rev. Proc. 2020-32, which provides the 2021 inflation-adjusted amounts for Health Savings Accounts. For 2021, the HSA contribution limit for individual coverage will be $3,600. For family coverage, the limit will be $7,200.
The notice also includes the 2021 calendar year minimum deductible and out-of-pocket maximums allowed for a plan to qualify as a high deductible health plan. The 2021 minimum deductible for individual coverage will remain the same at $1,400. The 2021 minimum deductible for family coverage will remain the same at $2,800. The 2021 maximum out-of-pocket limit for individual coverage will be $7,000. The 2021 maximum out-of-pocket limit for family coverage will be $14,000.
The full text of the notice is available here.
Senate Democrats Release COVID-19 Response Proposal
On Friday, May 22, Senate Democrats released a proposal for the next COVID-19 response bill. It is unlikely this proposal will be adopted in its entirety, and it is unclear at this point which, if any, pieces may be included in a final bill. The proposal was released by Senators Jeanne Shaheen (D-NH) and Tina Smith (D-MN) alongside Senate Finance Committee Ranking Member Ron Wyden (D-OR) and Senate Health, Education, Labor, and Pensions (HELP) Committee Ranking Member Patty Murray (D-WA).
The proposal includes a provision to establish subsidies to help individuals newly unemployed due to the COVID-19 pandemic pay COBRA premiums. As the proposal points out: “Since COBRA premiums are often very high, a subsidy to help pay premiums would help patients and families retain the coverage they are on now.”
The proposal also includes a provision to “[secure] coverage for COVID-19 treatment at no cost to all patients.” It is unclear at this point whether this will involve a COVID-19 treatment coverage mandate for private plans, including self-funded group health plans, similar to the COVID-19 testing mandate originally passed in the Families First Coronavirus Response Act. It is also unclear if this would involve any federal subsidies for employer-sponsored plans.
Full text is not available, but a summary of the proposal is available here.
