IRS to the Rescue: IRS Says That Payment of COVID-19 Testing and Treatment Expenses Does Not Infect High Deductible Health Plans

Blank Rome Workplace

In order to make tax-deductible contributions to a health savings account, an individual must be covered under a high deductible health plan and have no disqualifying health coverage.

High deductible health plans are required to have a minimum annual deductible and a maximum out-of-pocket expense limit.

In a notice issued today, Notice 2020-15, the Internal Revenue Service (“IRS”) stated that “due to the unprecedented public health emergency posed by COVID-19,” an individual would not lose their ability to make tax-deductible health savings account contributions because they are covered under a plan that otherwise qualifies as a high deductible health plan that provides for the payment or reimbursement of expenses (including expenses for care and the purchase of items) “related to testing for and treatment of COVID-19 prior to the satisfaction of the applicable minimum deductible.”

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