IRS Announces 2027 HSA, HDHP, HRA, and DPCSA Limits
Beth Kerstein
The Internal Revenue Service (IRS) has released the inflation-adjusted Health Savings Account (HSA) and High-Deductible Health Plan (HDHP) limits for 2027, giving employers and employees an early opportunity to plan for the coming year. The IRS guidance also includes inflation-adjusted limits for the total fees that can be offered through Direct Primary Care Service Arrangements (DPCSAs), which were introduced under the One Big Beautiful Bill Act (OBBBA). The new limits, issued in Revenue Procedure 2026-24, reflect modest increases designed to keep pace with rising healthcare costs.
For 2027, individuals covered under a qualifying HDHP with self-only coverage may contribute up to $4,500 to an HSA, an increase of $100 from the 2026 limit of $4,400. Those with family coverage may contribute up to $9,000, an increase of $250 from the current $8,750 limit. Individuals age 55 and older remain eligible to make an additional $1,000 catch-up contribution, which continues to be unchanged.
To be eligible to contribute to an HSA, individuals must be enrolled in a qualifying HDHP. For 2027, the minimum deductible for an HDHP will increase to $1,750 for self-only coverage and $3,500 for family coverage. Additionally, annual out-of-pocket maximums will rise to $8,700 for self-only coverage and $17,400 for family coverage.
| Limit | 2026 | 2027 | Change |
|---|---|---|---|
| HSA Contribution – Self-Only | $4,400 | $4,500 | +100 |
| HSA Contribution – Family | $8,750 | $9,000 | +$250 |
| HSA Catch-Up (Age 55+) | $1,000 | $1,000 | No Change |
| HDHP Minimum Deductible – Self-Only | $1,700 | $1,750 | +$50 |
| HDHP Minimum Deductible – Family | $3,400 | $3,500 | +$100 |
| HDHP Maximum Out-of-Pocket (excluding premiums) – Self-Only | $8,500 | $8,700 | +$200 |
| HDHP Maximum Out-of-Pocket (excluding premiums) – Family | $17,000 | $17,400 | +$400 |
| Excepted Benefit HRA (HRA) Maximum | $2,200 | $2,250 | +$50 |
| DPCSA Monthly Fee Limit – Self-Only | $150 | $150 | No Change |
| DPCSA Monthly Fee Limit – Family | $300 | $300 | No Change |
These annual adjustments provide employees with additional tax-advantaged savings opportunities for current and future healthcare expenses. For employers, the announcement serves as an important planning milestone as organizations begin preparing benefits strategies, enrollment materials, payroll systems, and employee communications for the 2027 plan year.
Organizations offering HSA-qualified health plans should review their benefit designs to ensure continued compliance with the new IRS thresholds and consider communicating the increased savings opportunities to employees during upcoming benefits education and enrollment activities.
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