The IRS has issued Notice 2020-15, which provides relief for testing and treatment for the 2019 Novel Coronavirus (COVID-19) from being disqualifying coverage for eligibility to contribute to a Health Savings Account (HSA). Health Plans are permitted to offer these services before the minimum High Deductible Health Plan (HDHP) deductible has been satisfied.
HDHP with HSA Background
Section 223 established that in order for individuals to make contributions to an HSA, they must be enrolled in a health plan which includes a deductible with a minimum deductible. For 2020, the minimum deductible is $1,400 for self-only coverage and $2,800 for family coverage (aggregate). Other than preventive care, all services must apply to the deductible before the health plan can make any payments.
The IRS Notice lifts the deductible requirement for testing and treatment for COVID-19. This is to remove financial barriers for individuals from seeking testing and/or treatment for this virus, which poses a public health risk, while allowing participants to remain eligible for contributions to an HSA.
Individuals (whether on an HSA qualified HDHP, or other health plan) should contact their insurance providers to identify how testing and treatment will be covered under their specific health plans.
No other changes are being made to IRS Code § 223 requirements and regulations in determining if a HDHP is HSA qualified.