Industry News

Recently, the Internal Revenue Service (IRS) issued Revenue Procedure 2026-24 with the 2027 inflation-adjusted amounts for Health Savings Accounts (HSAs), High Deductible Health Plans (HDHPs), and Excepted Benefit Health Reimbursement Arrangements (HRAs). In addition, it included provisions established under the One Big Beautiful Bill Act (OBBBA) for the relatively new Direct Primary Care Service Arrangements (DPCSAs) to exclude certain DPCSAs from being treated as a health plan.  

For calendar year 2027, the annual contribution limit to an HSA under IRC § 223(b)(2)(A) for an individual with self-only coverage under a qualifying HDHP is $4,500. For calendar year 2027, the annual contribution limit to an HSA under IRC § 223(b)(2)(B) for an individual with family coverage under a qualifying HDHP is $9,000. 

For calendar year 2027, the IRS defines a HDHP under IRC § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,750 for self-only coverage or $3,500 for family coverage. In addition, the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $8,700 for self-only coverage or $17,400 for family coverage. 

For plan years beginning in 2027, the maximum amount that may be made newly available for the plan year for an Excepted Benefit HRA (under § 54.9831-1(c)(3)(viii)) is $2,250. Employers use Excepted Benefit HRAs to help cover the cost of employees’ vision, dental, or short-term, limited-duration insurance plan premiums.

For calendar year 2027, a Direct Primary Care Service Arrangement (DPCSA) established under the One Big Beautiful Bill Act (OBBBA) (added under IRC § 223(c)(1)(E)) is not treated as a health plan for an otherwise eligible individual if the aggregate monthly fees for all DPCSAs for an individual do not exceed $150 or $300 for an individual covered by any DPCSA that covers more than one individual. The $150 and $300 amounts are adjusted for inflation for months beginning after December 31, 2026. Generally, a DPCSA is not considered a disqualifying health plan if it provides primary care services for a fixed periodic fee and does not include certain services such as general anesthesia or non-standard lab work.

As set by statute, the HSA catch-up contribution limit remains unchanged since 2009 at $1,000 per year for eligible individuals age 55 or older.

Rev. Proc. 2026-24 is available here.