IRS HDHP-HSA Plans May Cover Coronavirus Costs as Preventive Care
Today, in IRS Notice 2020-15, the Internal Revenue Service advised that HDHPs (High-Deductible Health Plans) can pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment, without jeopardizing their status. This also means that an individual with an HDHP that covers these costs may continue to contribute to a health savings account (HSA).
In Notice 2020-15, the IRS said that health plans that otherwise qualify as HDHPs will not lose that status merely because they cover the cost of testing for or treatment of COVID-19 before plan deductibles have been met. The IRS also noted that, as in the past, any vaccination costs continue to count as preventive care and can be paid for by an HDHP.
Today’s notice applies only to HSA-eligible HDHPs. Employees and other taxpayers in any other type of health plan with specific questions about their own plan and what it covers should contact their plan.
Coverage Issues
There have been many updates in this area. States like California have already issued a notice telling all fully-insured carriers to cover the costs without any cost-sharing measures. Self-funded plans have options about covering the costs with or without cost-sharing measures. Some TPAs are taking the position that they are covered without cost-sharing unless/until a self-funded group opts out.
Please check with your Account Manager and Account Executive about how this may affect your plan. And, rest assured that with IRS Notice 2020-15, if you choose to have the cost covered without deductible, copay or coinsurance your plan participants’ HSAs will not be effected.
Prior guidance/links:
- COVID-19, Be Prepared But Don’t Panic
- IRS Expands List of Preventive Care for HSA Participants
- US DOL COVID-19 FAQs and impact upon FMLA Claims
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