The IRS has issued guidance that eliminates barriers for testing and treatment of COVID-19 (coronavirus) for health savings account (HSA) participants under a high deductible health plan (HDHP) due to the current public health emergency.
Notice 2020-15 states that individuals covered by an HDHP that provides testing and treatment of COVID-19 prior to the satisfaction of the applicable minimum deductible will not fail HDHP requirements. Additionally, individuals covered by a plan offering COVID-19 testing and treatment regardless of deductible requirements will remain eligible individuals under Code Sec. 223(c)(1). Read the full notice here.
Background
An HSA is a trust created or organized exclusively for the purpose of paying the qualified medical expenses of an account beneficiary. An HSA can only be established for the benefit of an “eligible individual” who is covered under a “high deductible health plan” (HDHP). To satisfy requirements as an HDHP, the plan must meet certain minimum deductibles and maximum out-of-pocket expenses.
If you have questions or concerns about your health insurance plan and COVID-19 contact one of the Suttle & Stalnaker offices today.