CMS releases 2023 out-of-pocket expense limits

The U.S. Department of Health & Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS) have issued the 2023 annual dollar limits on cost sharing. The maximum annual limits on cost sharing that a group health plan can impose for 2023 are $9,100 for individual coverage and $18,200 for family coverage (up from $8,700 and $17,400, respectively, for 2022).

Note that these maximum limits on cost sharing are different from the 2023 IRS high-deductible health plan limits, which are expected to be released in the second quarter of 2022.

In prior years, these amounts have been included in the Notice of Benefit and Payment Parameters that CMS issues each year. Under a new policy, however, starting with the 2023 plan year, HHS will publish the premium adjustment percentage, maximum annual limits on cost sharing, reduced maximum annual limits on cost sharing and required contribution percentage by January of the year preceding the applicable benefit year (so by January 2022 for the 2023 benefit year).