IRS Announces High Deductible Health Plans (HDHP) Can Cover Coronavirus Testing and Treatment Costs

IRS Announces HDHP’s Can Cover COVID-19 Testing and Treatment Costs

On March 11, 2020, the IRS announced that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19) related testing and treatment. This would not jeopardize the status of the plan as a high deductible health plan. This also means that an individual with an HDHP that covers these costs may continue to contribute to their health savings account (HSA).   

The IRS said that health plans that otherwise qualify as HDHPs will not lose that status merely because they cover the cost of testing for or treatment of COVID-19 before plan deductibles have been met. The IRS also noted that, as in the past, any vaccination costs continue to count as preventive care and can be paid for by an HDHP.

Today‚Äôs notice applies only to HSA eligible HDHPs. Employees and other taxpayers in any other type of health plan with specific questions about their own plan and what it covers should contact their C2 HR representative at 703-444-0096.