2027 HSA, HDHP and HRA Cost-of-Living Adjustments Announced

The IRS has announced the 2027 cost-of-living adjustments for health savings accounts (HSAs), high-deductible health plans (HDHPs), and health reimbursement arrangements (HRAs):

• HSA Contribution Limits – the 2027 annual HSA contribution limit is $4,500 for individuals with self-only HDHP coverage (up from $4,400 in 2026), and $9,000 for individuals with family HDHP coverage (up from $8,750 in 2026). The age 55 catch-up limit remains $1,000.
• HDHP Minimum Deductibles – the 2027 minimum annual deductible (for purposes of qualifying as an HDHP) is $1,750 for self-only HDHP coverage (up from $1,700 in 2026) and $3,500 for family HDHP coverage (up from $3,400 in 2026).
• HDHP Out-of-Pocket Maximums – the 2027 limit on out-of-pocket expenses is $8,700 for self-only HDHP coverage (up from $8,500 in 2026) and $17,400 for family HDHP coverage (up from $17,000 in 2026).
• Excepted Benefit HRA Limit – for plan years beginning in 2027, the maximum amount that may be made newly available under an excepted benefit HRA is $2,250 (up from $2,200 in 2026).
• Direct Primary Care Arrangements – for 2027, direct primary care service arrangements (DPCSAs) will not disqualify an otherwise eligible individual from making HSA contributions if the aggregate monthly fees do not exceed $150 for self-only coverage (unchanged from 2026) or $300 for family coverage (unchanged from 2026).

Employers should begin preparations to (1) update their payroll systems and administration platforms, and (2) incorporate the new cost-of-living adjustments in participant communications and summary plan descriptions for 2027.

Morgan L. Kreiser
Sydney M. Mack, Summer Associate