IRS Provides Relief to High Deductible Health Plans for Expenses Related to COVID-19
Because High Deductible Health Plans (“HDHP”) require health plan participants to satisfy a substantial minimum deductible prior to covering certain treatments, there is concern that the HDHP deductible would be a barrier to participants seeking or receiving adequate testing and treatment for COVID-19. The IRS has addressed this concern in Notice 2020-15, providing the following relief:
- Group health plans that are Health Savings Account-eligible HDHPs do not fail to be an HDHP because the health plan provides for medical care services and items related to the testing for and treatment of COVID-19 prior to reaching the plan’s minimum deductible.
- If a Health Savings Account-eligible HDHP provides for the testing or treatment described above, individuals covered by that HDHP can still make contributions to a Health Savings Account for the year of expanded coverage.
If your company wishes to take steps to expand coverage for COVID-19 treatment and testing below high deductible limits, you should contact your health plan insurance carrier or administrator.
If you have any questions regarding this IRS guidance, feel free to reach out to:
|Debra J. Linder|
|Thomas B. Henke|
|James B. Platt