Federal contribution limits to Health Savings Accounts (HSAs) will increase in the year 2026. Below is what federal employees should be aware of regarding High-Deductible Health Plans (HDHPs).
In the Federal Employees Health Benefits (FEHB) program, High-Deductible Health Plans (HDHPs) paired with Health Savings Accounts (HSAs) are gaining popularity due to their cost-effectiveness. Here's a breakdown of how HSAs work within the FEHB program for 2026.
HSAs and Tax Savings
Contributions to an HSA are made before taxes, offering a significant tax advantage. Moreover, the investment gains within the HSA grow tax-free, and withdrawals used for qualified healthcare expenses are also tax-free, resulting in triple tax savings.
HDHP Deductibles and Contribution Limits
For those with self-only coverage, deductibles in HDHPs range from $1,650 to $2,000 per year. For self plus one and self and family coverage, deductibles range from $3,300 to $4,000 per year. In 2026, HSA contributions for self-only coverage typically range from $800 to $1,200, while for self plus one or family coverage, contributions range from $1,600 to $2,400 per year. The contribution limit for those with self plus one or self and family coverage is $8,750 in 2026.
Managing HSAs
HDHP enrollees designate a financial institution to manage their HSAs. Enrollees also have the option to invest HSA funds, with investment choices similar to those available in Individual Retirement Accounts.
HSA Management within FEHB Program
For the year 2026, the HSA accounts for HDHPs within the FEHB program are managed by Optum Bank.
IRS Rules and Flexible Spending Accounts
The IRS has announced an increase in HSA contribution limits for 2026. However, it's important to note that HDHP enrollees with an HSA are prohibited from also having a standard Health Care Flexible Spending Account. Enrollees in HDHPs with an HSA are allowed to enroll in a Limited Expense Health Care FSA specifically for dental and vision expenses, allowing savings of around 30%.
Portability and Predictable Costs
HSAs are fully portable, meaning they remain yours to keep and use if you switch to a different FEHB plan during a future Open Season. Some HDHPs offer fixed copayments for services once the deductible has been met, making costs more predictable.
Preventive Services
Preventive services are covered at no cost in HDHPs, both before and after meeting the deductible.
For those considering HDHPs with an HSA in the FEHB program, understanding these aspects can help make informed decisions about their healthcare coverage for 2026.
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