2006 HSA Numbers Released

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Health Insurance HSA Plan

The U.S. Treasury Department and the Internal Revenue Service (IRS) released guidance for Health Savings Account (HSA) plans for the 2006 calendar year. The guidance applies to HSA deductibles and out-of-pocket spending limits for the High Deductible Health Plans (HDHP) that must accompany the HSA.

An HSA plan combines a high deductible health insurance policy that covers catastrophic medical costs with a savings account. The account is controlled by the insured person and used to pay for smaller and routine health care expenses below the deductible. Because money in the HSA belongs to the individuals, they have a financial incentive to be value-conscious shoppers in the health care market place, which reduces utilization, lowering the growth of health care costs and therefore premiums.

The new numbers for calendar year 2006 are:

Health Savings Account Contribution:

  • Self-Only Coverage: the maximum annual Health Savings Account contribution for an eligible individual with self-only coverage is $2,700.

  • Family Coverage: the maximum annual Health Savings Account contribution is $5,450.

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  • Catch-up Contribution: for individuals who are 55 or older, the HSA catch-up contribution is increased by statute to $700.

New Amounts for Out-of-Pocket Spending on HSA-Compatible HDHPs:

  • Self-Only Coverage: the maximum annual out-of-pocket amount increases to $5,250.

  • Family Coverage: the maximum annual out-of-pocket amount is twice that figure, $10,500.

Minimum Deductible Amounts for HSA-Compatible HDHPs:

  • Self-Only Coverage: the minimum deductible for HDHPs increases to $1,050.

  • Family Coverage: the minimum deductible for HDHPs increases to $2,100.

"HSAs have revolutionized America's health care marketplace since the first one was sold January 1, 2004," states Victoria Craig Bunce, Council for Affordable Health Insurance Research and Policy Director. "With the 2006 calendar year numbers now available, consumers will be able to plan for next year's health care expenses."

Founded in 1992, Council for Affordable Health Insurance is a non-profit research and advocacy association whose mission is to develop and promote free market solutions to America's health care challenges. CAHI's membership includes health insurance companies (active in the individual, small group, HSA and senior markets), small businesses, physicians, actuaries and insurance brokers.

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