2022 Benefit Limits for Health & Welfare Plans

Keenan Briefings

Briefings

2022 Benefit Limits for Health & Welfare Plans

October 06, 2021

Every year, the U.S. Government sets new limits for various benefit programs to reflect inflation and changes in the law. Following are the limits announced or projected for 2022. Employers should review their benefit plans to ensure they reflect these new limits.

Retirement Plans

2021

2022

Limits on Benefits and Contributions:

    o Defined benefit plan, basic limit

    o Defined contribution plan, basic limit

    o 401(k) and 403(b) plans, elective deferrals

    o 457(b) plans, elective deferrals

    o SIMPLE plans, elective deferrals

    o Annual compensation limit

 

$230,000

$58,000

$19,500

$19,500

$13,500

$290,000

 

$245,000*

$61,000*

$20,500*

$20,500*

$14,000*

$305,000*

Catch-Up Contributions

    o 401(k), 403(b) or governmental 457 plans

    o SIMPLE plans

 

$6,500

$3,000

 

$6,500*

$3,000*

"Highly Compensated" Definition

$130,000

$135,000*

"Officer" Or "Key Employee" Definition

$185,000

$195,000*


Health Savings Accounts

2021

2022

Contributions

    o Individual

    o Family

 

$3,600

$7,200

 

$3,650

$7,300

Minimum Annual Deductible

    o Self-Only

    o Family

 

$1,400

$2,800

 

$1,400

$2,800

Out-of-Pocket Maximums (OOPM)

    o Self-Only

    o Family

 

$7,000

$14,000

 

$7,050

$14,100

Post-55 Catch-Up Limit

$1,000

$1,000


Non-HSA Qualified Plans

2021

2022

Out-of-Pocket Maximums (OOPM)

    o Self-Only

    o Other than self-only coverage

 

$8,550

$17,100

 

$8,700

$17,400


Medicare

2021

2022

Part A (Hospital Insurance):

    o Inpatient deductible

    o Daily Coinsurance, Days 61-90

    o Daily Coinsurance, Days 91-150

Lifetime Reserve

    o Daily Coinsurance, Skilled Nursing Facility [1]

$1,484

$371

$742

 

$185.50

$1,556*

$389*

$778*

 

$194.50*

Part B (Supplementary Medical Insurance):

    o Monthly premium

    o Deductible

 

$148.50

$203

 

$158.50*

$217*

Part D (Prescription Drug Benefit):

    o Base Part D Premium

    o Maximum Annual Deductible

    o Initial Coverage Limit

    o Annual Out-Of-Pocket Threshold

    o Minimum Copayment For Costs Above The Annual Out-Of-Pocket Threshold

 

$33.06

$445

$4,130

$6,550

$3.70 generic

$9.20 other

 

$33.37

$480*

$4,430

$7,050*

$3.95 generic

$9.85 other


Medical Savings Accounts

2021

2022

Individual Deductible Range


Individual Out-Of-Pocket Maximum

Family Deductible Range


Family Out-Of-Pocket Maximum

$2,400 - $3,600

$4,800

$4,800 - $7,150

$8,750

$2,450 - $3,700*

$4,950*

$4,950 - $7,400*

$9,050*


Long Term Care Insurance Deductible Premiums

2021

2022

Age:

    o 40 or less

    o 41-50

    o 51-60

    o 61-70

    o Over 70

 

$450

$850

$1,690

$4,520

$5,640

 

Not released

Not released

Not released

Not released

Not released


Flexible Spending Accounts

2021

2022

Dependent Care

Medical

$5,000

$2,750*

$5,000*

$2,850*

Medical FSA Employer Limit

$550*

$570*


Qualified Transportation Fringe Benefit

2021

2022

Parking

Transit Pass/ Commuter Vehicle

$270

$270

$280

$280


Control Employee Definition for Commuting Valuation

2021

2022

Officer Compensation

Employee Compensation

$115,000

$230,000

Not released

Not released


Affordable Care Act (ACA)

2021

2022

4980H(a) Penalty

$2,700

$2,750

4980H(b) Penalty

$4,060

$4,120

FPL Affordability Safe Harbors

  • FPL for Single individual
  • Maximum monthly contribution

[2]

$12,760

$104.53

[3]

$12,880

$103.14

Affordability

  • Affordability threshold under 4980H affordability safe harbors
  • Affordability threshold for eligibility of premium tax credits

 

9.83%

9.83%

 

9.61%

9.61%

PCORI Fee (per covered life)

$2.66 [4]

Not released

Please contact your Keenan Account Manager for questions regarding this Briefing.


* Estimated. Official amount not yet released.

[1] For days 21-100. Days 1-20 is $0 for each benefit period.

[2] Use 2020 poverty guidelines to determine affordability.

[3] Use 2021 poverty guidelines to determine affordability.

[4] For plan years ending on or after October 1, 2020 and before October 1, 2021.


AP Keenan is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Clients are advised to consult with their own attorney for a determination of their legal rights, responsibilities, and liabilities, including the interpretation of any statute or regulation, or its application to the clients’ business activities.