With Health Savings Accounts (HSAs), individuals and businesses buy less expensive health insurance policies with high deductibles. Contributions to the accounts are made on a pre-tax basis. The money can accumulate year after year tax free, and be withdrawn tax free to pay for a variety of medical expenses such as doctor visits, prescriptions, chiropractic care and premiums for long-term-care insurance.

Participating employers can also contribute to accounts, on behalf of their employees.

Here are the 2017 limits for individual and family coverage, which were announced by the IRS in Revenue Procedure 2016-28. They are determined after the IRS applies cost-of-living adjustment rules, and the changes in the Consumer Price Index for the relevant period.

* HSA Contribution Limits. The 2017 annual HSA contribution limit for individuals with self-only HDHP coverage is $3,400 (up from $3,350 for 2016), and the limit for individuals with family HDHP coverage is $6,750 (unchanged from 2016).

* High-Deductible Health Plan (HDHP) Minimum Required Deductibles. The 2017 minimum annual deductible for self-only HDHP coverage is $1,300 (unchanged from 2016) and the minimum annual deductible for family HDHP coverage is $2,600 (unchanged from 2016).

* HDHP Out-of-Pocket Maximums. The 2017 maximum limit on out-of-pocket expenses (including items such as deductibles, copayments, and coinsurance, but not premiums) for self-only HDHP coverage is $6,550 (unchanged from 2016), and the limit for family HDHP coverage is $13,100 (unchanged from 2016).

For more information about HSAs, contact your employee benefits and tax adviser.