The IRS has announced that high-deductible health plans can pay for COVID-19 (coronavirus) -related testing and treatment without jeopardizing their status. This also means that individuals with health savings account (HSA)-eligible, high-deductible health plans that cover these costs may continue to contribute to an HSA.
IRS Notice 2020-15 states that health plans that otherwise qualify as high-deductible health plans (HDHPs) will not lose that status because they cover the cost of testing for or treatment of COVID-19 before plan deductibles are met. Vaccination costs continue to count as preventive care and can be paid for by an HDHP.
Also, many insurance companies have agreed to waive co-pays for testing.
The notice is in response to growing concerns about the virus and the associated expenses.
