IRS States High-Deductible Health Plans Can Cover Coronavirus Costs
The IRS recently stated that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment without jeopardizing their status. This also means an individual with an HDHP that covers these costs may continue to contribute to a health savings account (HSA).
In Notice 2020-15, the IRS stated 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.
The notice applies only to HSA-eligible HDHPs. Employees and other taxpayers in any other type of health plan with specific questions should contact their plan.