IRS Permits Additional Preventive Care Benefits for HDHP Coverage
On July 17, 2019, the IRS issued guidance that expands health savings account (HSA) qualified expenses.
HSAs will now cover additional services and items used to treat chronic conditions, such as preventative care. This guidance expands the list of preventative care benefits covered by high deductible health plans (HDHPs) under section 223(c)(2) of the Internal Revenue Code (Code).
This change took effect on July 17, 2019. Details regarding the notice can be found here.
Important things to know about this change:
- This guidance allows HDHPs to cover these qualified expenses at 100 percent without impacting eligibility, even if the deductible is not met
- The definition of preventative care has not changed and coverage of the expanded list of qualified services and items must still be coupled with an approved diagnosis to qualify as an allowable expense
- The IRS has noted it will review the list to consider future items
- The list of approved preventative care items is provided below for reference
| Preventive care for specified conditions | For individuals diagnosed with |
|---|---|
| Angiotensin Converting Enzyme (ACE) inhibitors | Congestive heart failure, diabetes, and/or coronary artery disease |
| Anti-resorptive therapy | Osteoporosis and/or osteopenia |
| Beta-blockers | Congestive heart failure and/or coronary artery disease |
| Blood pressure monitor | Hypertension |
| Inhaled corticosteroids | Asthma |
| Insulin and other glucose lowering agents | Diabetes |
| Retinopathy screening | Diabetes |
| Peak flow meter | Asthma |
| Glucometer | Diabetes |
| Hemoglobin A1c testing | Diabetes |
| International Normalized Ratio (INR) testing | Liver disease and/or bleeding disorders |
| Low-density Lipoprotein (LDL) testing | Heart disease |
| Selective Serotonin Reuptake Inhibitors (SSRIs) | Depression |
| Statins | Heart disease and/or diabetes |