IRS Guidance for COVID-19 Testing and High Deductible Health Plans

On March 11, 2020, the IRS released Notice 2020-15, which addresses testing and treatment of the 2019 Novel Coronavirus (COVID-19) under a high deductible health plan (HDHP). Generally speaking, the IRS, until further notice, has removed any barriers to testing and treatment of COVID-19 under an HDHP, assuming the HDHP is otherwise compliant.

Under normal circumstances, there are many rules surrounding how an HDHP charges its participants for medical care. Certain tests or treatments must first be paid 100% out of pocket by a plan participant before the HDHP will cover any costs. If an HDHP violates these rules, the plan participants can lose the tax benefits associated with having a health savings account linked to a valid HDHP, which in turn causes substantial payroll issues for the employer.

In Notice 2020-15, the IRS states that “until further guidance is issued, a health plan that otherwise satisfies the requirements to be an [HDHP] … will not fail to be an HDHP … merely because the health plan provides health benefits associated with testing for and treatment of COVID-19 without a deductible or cost sharing, or with a deductible below the minimum deductible (self only or family) for an HDHP.”

Therefore, when deciding how to plan for and respond to COVID-19, employers with an otherwise compliant HDHP are free to provide testing and/or treatment services to participants without any deductible or with a deductible below the minimum amount set in the tax code. 

For questions contact N. Thomas Horton, H. Joseph Cohen or Steve R. Uhey.

N. Thomas Horton

H. Joseph Cohen

Steve R. Uhey

Barrett McNagny LLP

Legal Disclaimer

The information contained in the Barrett McNagny LLP website is for informational purposes only and should not be considered legal advice on any subject matter. Furthermore, the information contained on our website may not reflect the most current legal developments. You should not act upon this information without consulting legal counsel.

Your transmission and receipt of information on the Barrett McNagny LLP website, or sending an e-mail to one of our attorneys or staff, will not create an attorney-client relationship between you and Barrett McNagny LLP. If you need legal advice and want to establish an attorney-client relationship with Barrett McNagny LLP, please contact one of our attorneys by telephone, email, or other means of communication, and allow the attorney to confirm that the firm does not represent other persons or entities involved in the matter and that the firm is willing to accept representation. Until such confirmation is provided by one of our attorneys, you should not transmit information to us that you consider confidential. If you do provide information to us, and no attorney-client relationship is established, the information will not be considered confidential or privileged, and our receipt of such information will not preclude us from representing another client in a matter adverse to you.

Any links to other websites are not intended to be referrals or endorsements of those sites.

Privacy Policy

Terms of Use

ADA Compliance

Contact Us
Hello,
My name is
 
and I am a(n)
seeking legal counsel in the area of 
.
Please
me at
as soon as you can.

Thank you for contacting us!

A representative will be in touch with you shortly.

An attorney-client relationship will NOT be formed merely by sending an email to Barrett McNagny, LLP or to any of its attorneys. Please do not send any information specific to your legal needs until you obtain approval from a Barrett McNagny, LLP attorney, as the content of such email will not be considered confidential or privileged. By sending us an email, you confirm your understanding of this notification. If you agree, you may use the e-mail links on this page to contact an attorney.
YesNo