Health Savings Accounts (HSA) are pre-tax accounts available to individuals who are covered under a high-deductible health plan (HDHP). These accounts help employees pay for health expenses in the face of rising health insurance costs. Eligible individuals can accumulate money, tax-free, in HSAs to pay for qualified medical expenses.

To be eligible to participate in an HSA, the policyholder must, among other requirements, be enrolled in an HSA-qualified high deductible health plan with a minimum annual deductible. The Internal Revenue Service (IRS) announced an increase to that deductible amount.

For calendar year 2013, a high deductible health plan is defined as a health plan with an annual deductible that is not less than $1,250 for self-only coverage or $2,500 for family coverage. The maximum annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) cannot exceed $6,250 for self-only coverage or $12,500 for family coverage.

The annual maximum HAS contribution for 2013 is:

• $3,250 for individuals with self-only coverage (an increase of $150 from 2012).
• $6,450 (an increase of $200 from 2012).

For more information, visit the IRS website.

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