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.