Things are looking up for 2019! At least where HSA and MOOP levels are concerned.
What is a MOOP?
MOOP stands for Maximum Out Of Pocket, and directly from healthcare.gov is defined as “the most you have to pay for covered services in a plan year. After you spend this amount on deductibles, copayments, and coinsurance, your health plan pays 100% of the costs of covered benefits.” I always caution my clients that when they say covered services, this means that you must stay in the network if you have an HMO or Exclusive plan.
For 2018, the MOOP was $7,350 for an individual, $14,700 for a family. For 2019, it will be $7,900 for an individual, and $15,800 for a family.
This is the largest increase since the MOOP was created in 2014, with a jump of $550 for an individual as compared to increases of between $200 and $300 in previous years.
Year Individual MOOP Family MOOP
2019 7,900 15,800
2018 7,350 14,700
2017 7,150 14,300
2016 6,850 13,700
2015 6,600 13,200
2014 6,350 12,700
What is an HSA?
HSA stands for Health Savings Account, and from healthcare.gov is “a type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in an HSA to pay for deductibles, copayments, coinsurance, and some other expenses, you can lower your overall healthcare costs. An HSA can only be used if you have a High Deductible Health Plan (HDHP).” Generally, an HSA plan is one where the consumer is paying for most or all of the coverage up to a high deductible.
The amount of money that a person or family can contribute to an HSA and use to pay for medical expenses tax-free is also increasing this year.
Year Individual HSA Contribution Family HSA Contribution
2019 3,500 7,000
2018 3,450 6,900
2017 3,400 6,850
2016 3,350 6,750
2015 3,350 6,650
2014 3,300 6,550
The IRS increases the HSA limit per year with inflation. The limits for 2019 to qualify as an HDHP is a $1,350 annual deductible for an individual and $2,700 for family coverage. This is the same as 2018. The high limit for MOOP for 2019 for an HDHP is $6,750 for individuals and $13,500 for families. This is significantly less than the MOOP for a non-HSA plan, one of the ways that an HDHP can help save a healthy person or family money.
Is it also important for consumers to note that, as of the date of this blog, HSA funds CANNOT be used to pay premiums since those aren’t considered qualified medical expenses.
Any questions? Give the experts at Cedar River Insurance a call at 517-580-3819!