- The employee’s W-2 wages, as reported in Box 1 (at the start of 2022).
- The employee’s rate of pay, which is the hourly wage rate multiplied by 130 hours per month (at the start of 2022).
- The individual federal poverty level, which is published by the Department of Health and Human Services in January of every year. If using this method, an employee’s premium contribution cannot be more than $104.52 per month.
Out-of-pocket maximumsThe IRS also sets out-of-pocket maximum cost-sharing levels for every year. This limit covers plan deductibles, copayments and percentage-of-cost co-sharing payments. It does not cover premiums. The new out-of-pocket limits for 2022 are as follows:
- Self-only plans — $8,700, up from $8,550 in 2021.
- Family plans — $17,400, up from $17,100 in 2021.
- Self-only health savings account-qualified high-deductible health plans — $7,050, up from $7,000 in 2021.
- Family HSA-qualified HDHPs — $14,100, up from $14,000 in 2021.