As the calendar turns to 2024, participants in Medical Savings Accounts (MSAs) will need to be aware of significant changes to the rules governing self-only and family coverage. The Internal Revenue Service (IRS) has announced adjustments to annual deductibles and out-of-pocket expense limits, aiming to strike a balance between ensuring access to healthcare and managing the financial implications for participants. In this blog post, we'll break down the changes for tax year 2024 and provide a clear understanding of the new regulations.
For participants with self-only coverage in a Medical Savings Account, the annual deductible must now be a minimum of $2,800, a $150 increase from the previous tax year. This adjustment reflects the rising costs of healthcare and aims to maintain a reasonable threshold for participants. However, the maximum annual deductible has also increased to $4,150, up by $200 from 2023. This upper limit ensures that participants are not burdened with excessively high deductibles, striking a balance between cost-sharing and accessibility to healthcare services.
In addition to the changes in deductibles, the maximum out-of-pocket expense amount for self-only coverage has been increased to $5,550, marking a $250 rise from the previous tax year. This adjustment recognizes the growing expenses associated with medical care and seeks to protect participants from exorbitant costs while maintaining financial responsibility.