New out-of-pocket and HSA limits for 2025 announced

The Internal Revenue Service recently announced the calendar year limits for high deductible health plans (HDHPs) and plans with consumer driven health (CDH) accounts for 2025.

What does this chart mean for you? The first row tells us what the maximum out-of-pocket cost will be on any health plan. The middle row describes the minimum deductible a plan can have while also providing you with a health savings account. These figures are revised every year to better reflect cost of living adjustments.

The third row is the most you or your employer can contribute to a (HSA) or health reimbursement account (HRA).

HSA catch-up contributions for those 55 and older remain at $1,000.

What should I do with this?

If you have a plan with the $8,050 single or $16,100 family out-of-pocket maximum (OOPM), be ready for that to hike up to the $8,300/$16,600 mark. Thankfully, the monthly premiums for health insurance plans are so much lower. Honestly, everyone with an HDHP should prepare for an increased OOPM unless they have a grandfathered plan.

If you have a plan with an HSA, these changes aren’t the worst news. We are now able to contribute even more to our health savings accounts. Why add more? These contributions are tax-free: the government does not apply taxes when adding them in or taking them out.

On top of that, consumers can also invest the money squirreled away in accounts in things like mutual funds, stocks, bonds, and more. And you guessed it: those potential earnings are also untaxed. This gives you a great opportunity to make back some of those health care costs while still having an avenue to pay for qualified medical expenses.

If you are near retirement and recently gained access to an HSA, you can chip in a bit more than the younger folks to “catch up.” So if you are 55 or older, you actually can add $5,150 as a single person in 2025 to your account.

But keep this in mind: once you sign up for Medicare, you can't contribute to that HSA anymore. You can still withdraw the money for medical expenses without paying taxes. However, you cannot add more HSA funds to the account.

So who is the best candidate for a high-deductible plan with an HSA? If you are comfortable with a higher deductible plan, you probably won't reach your out-of-pocket max anyway, but you can invest that money into an HSA and start earning on the investments you could possibly make.

But if you find yourself worried about meeting annual deductibles and OOPMs, then maybe a different account is right for you. Flexible Spending Accounts (FSAs) are also an option for those who don't want an HDHP.

Want to learn even more about health reimbursement accounts, health savings accounts, and other types of health insurance savings accounts? Check out our video on consumer-driven health accounts.