March 12, 2020

IRS Permits COVID-19 Testing & Treatment with Low-to-No Deductible to Support Public Health

To promote access to testing & treatment for public health & safety, and to alleviate worry for those covered by High Deductible Health Plans (“HDHPs”) who may not yet have met minimum deductible amounts, the IRS will permit HDHPs to cover testing for, and treatment of, COVID-19 at low-to-no cost.

Typically, under Section 223(c)1 of the IRC, participants must be covered under a HDHP and have no disqualifying health coverage; additionally, Section 223(c)1 permits the deduction of qualified medical expenses via a Health Savings Account (“HSA”). There are annual minimum deductible and maximum out-of-pocket expense requirements associated with HDHPs.

Participants covered under HDHPs are recommended to consult their physicians with questions about COVID-19 and seek advice from their health plan professionals for testing and treatment coverage of COVID-19 provided by the plan, including cost sharing. Click here to learn more about HDHPs and HSAs, including 2020’s limits.

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