WORKSPAN DAILY |
IRS to Provide Temporary Relief for HDHPs Covering COVID-19 Health Services
The Internal Revenue Service (IRS) issued a notice that high-deductible health plans (HDHPs) can pay for coronavirus-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), per the IRS’ release.
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.
"During this time of global uncertainty and anxiety, we must find ways to keep our community members safe," said Shobin Uralil, co-founder and COO of Lively, an HSA provider. "I applaud the IRS for acting swiftly to remove any barriers for those who need to seek medical case (regardless of your insurance coverage) as a result of the novel Coronavirus (COVID-19)."
The 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 provider.