Does my HSA Cover Covid-19 Testing and Treatment?
The IRS has issued Notice 2020-15 on March 11, 2020, which allows high-deductible health plans (HDHPs) to cover testing and treatment for COVID-19 without a deductible. In other words, coronavirus testing and treatment are considered qualified medical expenses under an HDHP, and people can use HSA funds to pay for it. Due to the COVID-19 national health emergency, Notice 2020-15 also applies to HDHPs that would otherwise be disqualified under Internal Revenue Code section 223(c)(2)(A). In other words, HDHPs that provide additional health benefits covering coronavirus testing and treatment, and HDHPs with a deductible that falls below the minimum requirement are also subject to the Notice.
Does the CARES Act Expand the List of Reimbursable Expenses through an HSA? (Over-the-Counter (OTC) Drugs and Menstrual Care Products)
YES! The CARES Act states that consumers can purchase OTC drugs and medicines with funds from their health savings account (HSA), flexible spending accounts (FSA), or health reimbursement arrangement (HRA). Consumers may also receive reimbursement for OTC purchases through those accounts. The Act also includes menstrual products as a qualified medical expense, meaning consumers can pay or seek reimbursement for purchasing these products through an HSA, FSA, or HRA. This provision is effective for purchases and reimbursements of expenses incurred after December 31, 2019. It does not have an expiration date.
What Has Changed Regarding Telehealth?
The CARES Act states that "telehealth and other remote care services" below the deductible will be permitted in an HSA-compatible high deductible health plan (HDHP). This provision is effective immediately and will expire December 31, 2021.
