HHS Provides 2022 Benefit Payment Out-of-Pocket Limits
Updating our previous article on the HSA and HDHP limit increases for 2022, we wanted to provide some information on the non-HDHP amounts as well. Last month, the Department of Health and Human Services (HHS) published the finalized 2022 Benefit Parameters, outlining the maximum out-of-pocket (OOP) limits applicable to non-grandfathered plans for plan years beginning in 2022. Each year, these OOP maximums are adjusted for inflation.
Under the Affordable Care Act (ACA), non-grandfathered health plans are required to comply with an overall annual limit on out-of-pocket expenses for essential health benefits. The current limits applicable to 2021 plan years is $8,550 for self-only coverage and $17,100 for family coverage. The 2022 limits will be raised to $8,700 for self-only coverage and $17,400 for family coverage, respectively.
Here’s a summary of both traditional plans and HDHP/HSA for the 2021/2022 plan years for reference:
If your plans offer both traditional and HDHP/HSA plans (that are not grandfathered), your plans are subject to both sets of requirements and you must ensure compliance with the lowest applicable out-of-pocket maximum. Plus, the ACA requires that a per person (individualized/imbedded) out-of-pocket maximum doesn't exceed the ACA limit, even if you are in the larger (family) tier.
Links:
· IRS HDHP-HSA Increase – Revenue Procedure 2021-25
Related articles
An organization’s overall wellness program reaches not only their employees. It reaches an employee’s loved ones, including their spouses and their dependents. This is why it is essential to think...
Employers across the nation are trying to find new ways to contain the rising costs of prescription drugs. For many small businesses, employee benefits can be a key way to attract and retain top...
Pharmacies-and-Reference-Based-Pricing Health care costs continue to rise, a longtime trend that pushes organizations to lower expenses at every opportunity, though confronting the affordability...