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IRS Allows HDHPs to Pay for Coronavirus Tests & Treatment

Posted by Tom Stonebraker on Apr 24, 2020 11:28:38 AM

On March 11, 2020, the Internal Revenue Service (IRS) issued Notice 2020-15 to advise that high deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19) testing and treatment before plan deductibles have been met, without jeopardizing their status. According to the IRS, this also
means that individuals with HDHPs that cover these costs may continue to contribute to their health savings accounts (HSAs).
The IRS also noted that any COVID-19 vaccination costs count as preventive care and can be paid for by an HDHP without cost sharing.

 

Key Points

  • HDHPs can pay for COVID-19
    testing and treatment without
    imposing a deductible.
  • As a growing trend, states are
    directing or encouraging health
    insurance issuers to cover this
    testing without any cost sharing.
  • Employers with HDHPs should
    consult with their plan’s issuer
    or benefits administrator
    regarding their plan’s coverage
    for COVID-19 testing and
    treatment.

 

Employers with HDHPs should
consult with their plan’s issuer
or benefits administrator
regarding their plan’s coverage
for COVID-19 testing and
treatment.

Action Steps

Keep up to date with the latest Coronavirus information at the Centers for Disease Control website. 

Employers with HDHP's should consult with their plan’s issuer or benefits administrator regarding their plan’s benefits for COVID-19 testing and treatment, including the potential application of any deductible.

Topics: Coronavirus, COVID-19

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