Coronavirus (COVID-19) and Your HSA What You Need to Know
In response to the spread of the 2019 Novel Coronavirus (COVID-19), on March 11, 2020, the IRS released a notice regarding HSA-qualified high deductible health plan (HDHP) coverage of testing and treatment related to COVID-19. This is to allow the removal of barriers for testing and treatment of COVID-19.
Enrollment in a qualifying high-deductible health plan (HDHPs) is required for the establishment of a health savings account (HSA). The rules surrounding a HDHP state that only a list of preventive care expenses, vision and dental can be paid by the plan on behalf of an HSA owner before the HDHP or statutory deductible is met. If other expenses are paid from an insurance carrier prior to reaching the statutory deductible, the account holder will no longer be eligible to continue to make contributions to the HSA. That raises the question: What happens if the HSA owner or family member contracts the virus? How do they pay for tests, quarantines and treatment?
Under the notice, health plans that otherwise qualify as HSA-eligible HDHPs will not lose that status solely because they cover the cost of testing for or treatment of COVID-19 before the plan’s minimum deductible has been met. This includes any testing or treatment provided without cost-sharing, including telemedicine visits related to COVID-19. The notice provides that vaccinations continue to be considered preventive care and can be paid for by the HDHP without first meeting a deductible.
Other expenses that could be paid by insurance carriers below the deductible without fear of HSA consequences, if directly related to COVID-19 include:
- Office visits
- Lab tests
- Urgent care visits
- Emergency room visits
- Hospitalization or isolation facility charges
Of course, all qualified medical expenses may be paid from HSA funds. Keep in mind, that any over-the-counter medicine may be purchased with funds from an HSA, or healthcare flexible spending account (FSA), if prescribed by a doctor.
If you have any questions regarding your HSA and eligible expenses, do not hesitate to reach out 248-543-8181.