On Wednesday, July 17th, the Internal Revenue Service added care for a range of chronic conditions to the list of preventive care benefits that may be provided by a high deductible health plan (HDHP). The new list is optional for a plan sponsor of HSA qualified HDHP plan to offer without impacting the member’s opportunity to fund their HSA account.
Individuals covered by an HDHP generally may establish and deduct contributions to a Health Savings Account (HSA) as long as they have no disqualifying health coverage. To qualify as a high deductible health plan, an HDHP generally may not provide benefits for any year until the minimum deductible for that year is satisfied. However, an HDHP is not required to have a deductible for preventive care (as defined for purposes of the HDHP/HSA rules).
The IRS and the Department of Health and Human Services have determined that certain medical care services received and items purchased, including prescription drugs, for certain chronic conditions should be classified as preventive care for someone with that chronic condition as specified in Notice 2019-45. Any medical care previously recognized as preventive care for these rules is still treated as preventive care.
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