IRS Releases 2027 HSA and HDHP Limits: What Employers Need to Know

IRS Releases 2027 HSA and HDHP Limits: What Employers Need to Know

The IRS has announced the 2027 inflation-adjusted limits for Health Savings Accounts (HSAs), High-Deductible Health Plans (HDHPs), and Excepted-Benefit Health Reimbursement Arrangements (HRAs), giving employers an opportunity to begin planning for the upcoming plan year.

20262027
LimitSelf-Only Family Self-Only Family 
HSA Contribution Limit$4,400$8,750$4,500$9,000
HDHP Minimum Deductible$1,700$3,400$1,750$3,500
HDHP Maximum Out-of-Pocket$8,500$17,000$8,700$17,400

The additional HSA catch-up contribution for individuals age 55 and older remains $1,000. The maximum amount available under an excepted-benefit HRA will increase from $2,200 in 2026 to $2,250 for 2027.


Remember: HDHP Limits and ACA Limits Are Different

Employers offering HSA-qualified health plans should remember that IRS HDHP requirements are separate from the Affordable Care Act’s annual out-of-pocket maximums.

The IRS establishes the deductible and out-of-pocket limits that determine HSA eligibility, while CMS and HHS establish separate ACA cost-sharing limits. HSA-qualified plans must comply with both sets of requirements where applicable.


Why This Matters

While these changes won’t take effect until 2027, they can impact:

  • Employer HSA contribution budgets
  • HDHP plan design decisions
  • Employee communications
  • Payroll deductions and benefits administration systems
  • Open enrollment planning

For employers that contribute to employee HSAs, even modest increases can affect budgeting across the workforce.


Employer Action Items

As you prepare for 2027, consider the following:

  • Review HDHP plan designs for compliance with the new IRS limits.
  • Update payroll and benefits administration systems.
  • Evaluate employer HSA contribution strategies and budget impacts.
  • Refresh employee communications before open enrollment.
  • Monitor future CMS and HHS guidance regarding 2027 ACA out-of-pocket maximums.

HSAs continue to be one of the most valuable tax-advantaged benefits available to employees. Understanding the new limits now can help employers make informed decisions, stay compliant, and prepare for a successful 2027 enrollment season.