As expected, the 2027 Health Savings Account (HSA) contribution limit for an individual with self-only high deductible health plan (HDHP) coverage will be $4,500, increased by $100 from $4,400 in 2026, according to Internal Revenue Service Revenue Procedure 2026-24, released today.
For an individual with family HDHP coverage, the contribution limit will be $9,000 in 2027, increased from $8,750 in 2026. Individuals who are age 55 or older by the end of the taxable year may continue to make an additional catch-up contribution of $1,000, as it is not indexed for inflation and remains static unless Congress changes the law.
As explained in a Wagner Law Group Law Alert today, to qualify as an HDHP in 2027, a plan must have an annual deductible of at least $1,750 for self-only coverage and $3,500 for family coverage, increased from $1,700 and $3,400, respectively, in 2026. The maximum annual out-of-pocket expenses permitted for an HDHP are $8,700 for self-only coverage and $17,400 for family coverage, increased from $8,500 and $17,000, respectively, in 2026.
The IRS also announced the maximum amount that may be made available under an excepted benefit health reimbursement arrangement (HRA) for plan years beginning in 2027. The maximum amount that may be made available under an excepted benefit HRA in 2027 is $2,250, increased from $2,200 for plan years beginning in 2026.
Most of the IRS’s annual benefit limits are tied to inflation, and they’re recalculated using formulas outlined in the Internal Revenue Code. HSA and HDHP limits are adjusted annually using the Chained Consumer Price Index for All Urban Consumers (C-CPI-U). These changes reflect shifts in healthcare costs and overall inflation.
Revenue Procedure 2026-24 also includes the first inflation adjustment guidance for direct primary care service arrangements (DPCSAs), which today’s Wagner alert points out became HSA-compatible under the One Big Beautiful Bill Act (“OBBBA”). Beginning in 2026, individuals covered by qualifying DPCSAs are permitted to remain HSA-eligible, and DPCSA fees may be treated as qualified medical expenses payable from an HSA.
To qualify, the aggregate fees under a DPCSA may not exceed specified monthly limits, which are indexed for inflation beginning in 2027. For months beginning in 2027, however, the inflation-adjusted limits remain unchanged at $150 per month for self-only coverage and $300 per month for family coverage. Accordingly, individuals covered by qualifying DPCSAs with aggregate fees at or below these amounts may continue to contribute to an HSA while participating in the arrangement.
The Wagner Law Group says employers sponsoring HDHPs, HSAs, and excepted benefit HRAs should review their plan designs, participant communications, enrollment materials, payroll systems, and administrative procedures to ensure compliance with the 2027 limits.
SEE ALSO:
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