HSA billing statement

Recently, the IRS released their Revenue Procedure 2022-24, which details, among other things, the maximum HSA contribution limits for 2023.

To make sure your Small Groups know what to expect, we have compiled everything they need to know about their 2023 HSA accounts. Use this article to answer their questions, offer suggestions, and ensure they are ready for their open enrollment season.

What is an HSA?

Health savings accounts, or HSAs, are tax-advantaged member-owned accounts that let you save pre-tax dollars for future qualified medical expenses. With an HSA, you can invest in mutual funds tax-free and the funds never expire.

An HSA can help cover qualified emergency, dental, vision, and family medical expenses.

What are Some HSA-eligible expenses?

The most common HSA-expensed items include copays for prescriptions and office visits, crutches, flu shots, and immunizations. HSAs don’t just cover these common medial items and procedures, though. Other HSA-eligible expenses include:

  • Contraceptives

  • Ambulance services

  • Medical records fees

  • Aspirin

  • Eye Drops

  • Band-aids

  • Sleep aids

  • Childbirth

As of 2021, in an effort to slow the spread of COVID 19, the IRS issued Announcement 2021-7. This announcement led to masks, hand sanitizer, and sanitizing wipes to be added to the list of HSA-eligible expenses. In addition, the Coronavirus Aid, Relief, and Economic Security (CARES) Act added new items like menstrual products and additional over-the-counter medications.

Who Is Eligible For an HSA?

To contribute to an HSA, an individual must be covered under a high deductible health plan. For 2023, the IRS has defined a high deductible health plan as:

  • No less than $1,500 for self-only coverage

  • No less than $3,000 for family coverage


Who is Not Eligible For an HSA?

There are multiple reasons why someone may not be eligible for an HSA, including:

  • They receive healthcare coverage beyond qualified health plans

  • They are claimed as a dependent on someone else’s tax returns

  • They have received Veterans Affairs benefits within the past three months


What is the Difference Between an HSA and a Flexible Spending Accounts (FSA)?

Unlike an FSA, individuals own their HSA. That means their balance rolls over every year and is not tied to any singular job or employer.

Other differences between and HSA and an FSA include:



HSA-qualified health plan

Traditional health plan

Lower premiums

Higher premiums

Higher deductibles

Lower deductibles

Cover premium payments

Doesn’t cover premium payments

Funds don’t expire

Funds expire


What are the 2023 HSA Contribution Limits and Guidelines?

2023 HSA Contribution Limits and Guidelines

Minimum deductible amounts

$1,500 single plan
$3,000 family plan

Maximum out-of-pocket limits

$7,500 single plan
$15,000 family plan

HSA contribution limits

HSA members can contribute up to the annual maximum amount that is set by the IRS.

$3,850 single coverage
$7,750 family coverage


Catch-up contributions

Those 55 and older are allowed by the IRS to contribute an extra $1,000 to their annual maximum amount.

Prorated contribution limits

According to the IRS, contribution limits must be prorated by the number of months one is eligible to contribute to a health savings account. To determine a prorated limit, divide the contribution limit by 12.


HSAs, FSAs, and everything else that goes into choosing the right health insurance can be complicated. Most Small Groups and individuals don’t feel comfortable navigating open enrollment and coverage on their own. Health insurance Brokers are trained professionals whose job is to take the pain out of the process and guide individuals from quote to enrollment.

If you’re a Broker and want to streamline your next enrollment season, contact usFormFire has the tools and expertise to help you quote, sell and manage your Small Groups better than ever.