IRS Loosens HSA Rules to Aid COVID-19 Relief | Saturna Capital
COVID-19 HSA News

March 11, 2020 – The IRS has waived certain restrictions related to qualified High Deductible Health Plans (HDHP), commonly known as “HSA Plans,” in order to expand health coverage for testing and treatment of COVID-19. The IRS announced it will waive HDHP deductible requirements to permit HSA Plans to cover COVID-19-related testing and treatment without jeopardizing their status as qualified plans. HSA account holders will not lose the tax-favored status of their contributions if they receive COVID-19 testing or treatment. Under normal circumstances, an HSA Plan will cover only specific preventative care expenses until the out-of-pocket deductible threshold has been met.

The IRS notice states, “Due to the unprecedented public health emergency posed by COVID-19, and the need to eliminate potential administrative and financial barriers to testing for and treatment of COVID-19, a health plan that otherwise satisfies the requirement to be an HDHP under section 223(c)(2)(A) will not fail to be an HDHP merely because the health plan provides medical care services and items purchased related to testing for and treatment of COVID-19 prior to the satisfaction of the applicable minimum deductible.”

For more information:

https://www.irs.gov/newsroom/irs-high-deductible-health-plans-can-cover-coronavirus-costs