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IRS Updates

IRS Updates Health Coverage Affordability Calculation for Individuals for 2018

The Internal Revenue Service (IRS) issued Revenue Procedure 2017-36, adjusting the calculation determining whether an individual can afford employer-sponsored health coverage, which affects whether the individual would be eligible for a premium tax credit on the public health exchanges. This could affect employers who are not using a safe harbor method to determine whether the coverage they offer is affordable to employees. For plan years beginning in 2018, the required contribution percentage is 9.56%, down from 9.69% in 2017.​

IRS Releases HSA and HDHP Inflation Adjusted Amounts for 2018

Internal Revenue Service (IRS) Revenue Procedure 2017-37 provides the annual health savings account (HSA) contribution limitation, the minimum deductible for a high-deductible health plan (HDHP) and the maximum out-of-pocket expense limits for an HDHP in 2018.

For calendar year 2018:

The annual contribution limitation under an HDHP is

•$3,450 for self-only coverage

•$6,900 for family coverage.

The minimum deductible of a high deductible health plan is

•$1,350 for self-only coverage or

•$2,700 for family coverage.

The maximum out-of-pocket expense limit for a high deductible health plan is

•$6,650 for self-only coverage or

•$13,300 for family coverage.