Health plans and COVID-19: IRS expands eligibility

Health plans that otherwise qualify as high-deductible health plans (HDHPs) won’t lose that status merely because they cover the cost of COVID-19 testing or treatment before plan deductibles have been met.

That’s the word straight from IRS.

And employees in those HDHPs can keep contributing to a health savings account (HSA).

Feds expanded HDHP rules last summer too

This isn’t the first time the feds have expanded what can be covered by an HDHP, even before deductibles get met.

A recent IRS ruling allowed more preventive treatments and meds to be covered for companies with high-deductible health plans.

The IRS ruling, effective last summer, specifically addressed health plans with high deductibles and HSAs, and listed common chronic care treatments that can now be covered before employees satisfy their deductibles.

Additional tests, treatments covered

Some of those approved services include:

• Medications: insulin (diabetes), beta-blockers (coronary artery disease) and statins (heart disease)
• Tests: glucometers (diabetes), peak flow meters (asthma) and blood pressure monitors (hypertension)

That new ruling stemmed from an executive order issued last June to help those with chronic conditions afford their meds.

The Treasury expanded the use of HSAs to cover low-cost preventive care.

Of course, all of this can save employers money since forgoing drugs could lead to more serious health conditions, both during this pandemic and beyond.