As many of you know, I track the data needed to make inflation adjustments for Health Savings Accounts from one year to the next. I have accurately predicted the annual adjustments by the Internal Revenue Service for the past 12 years.
With the January 12 release of the December inflation figures by the Bureau of Labor Statistics, the inflation-adjusted amounts for HSAs for 2019 are coming into view. With only three months of data remaining to be collected, I can now project the HSA amounts for next year with virtual certainty.
I am projecting that the HSA contribution limits will increase again for 2019 but only the annual out-of-pocket maximums for HSA-qualified health plans will change for 2019 (minimum deductibles will remain unchanged from 2018). This means insurance carriers and trustees and custodians will need to plan ahead and start making the necessary adjustments now. The good news for consumers is the HSA contribution limits will be going up, both for singles and families. You can find my projections on my website AskMrHSA.com.
If inflation remains low (as is expected), my projections are likely to be the same as the final 2019 amounts determined by the IRS later this Spring. Also, keep in mind that the recently enacted tax reform law (P.L. 115-97) changed the annual inflation adjustment factor from the “Consumer Price Index” (CPI) to a new factor known as “chained CPI” starting in 2018. Chained CPI has tended to be slightly lower than CPI over the past decade, so expect future HSA amounts to be adjusted less frequently than in the past.