IRS Expands List of Preventive Care for HSA Participants to Include Certain Care for Chronic Conditions

Today the IRS added care for a range of chronic conditions to the list of preventive care benefits that may be provided by a HSA compatible high deductible health plans (HDHP). Notice 2019-45, lists the new types of medical care that may be treated as preventive care for this purpose.

Individuals covered by an HSA compatible HDHP generally may establish and deduct contributions to a Health Savings Account (HSA) as long as they have no disqualifying health coverage or not enrolled into Medicare. To qualify as a high deductible health plan, an HDHP generally may not provide benefits for any year until the Federal (not health plan) minimum deductible for that year is satisfied.

The IRS together with 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.

Notice 2019-45 provides that the following services and items for individuals with the specified chronic conditions listed are treated as preventive care.

Of note is that male contraceptives will continue NOT to be considered preventive. We mention this as some states have taken the stance that they are. See page 2 of the notice which states, “the notice provides that a health plan that provides benefits for male sterilization or male contraceptives before satisfying the minimum deductible for an HDHP under section 223(c)(2)(A) does not constitute an HDHP, regardless of whether the coverage of such benefits is required by state law.”

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