IRS: High-deductible health plans can cover coronavirus costs

IR-2020-54, March 11, 2020

WASHINGTON — The Internal Revenue Service today advised that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment, without jeopardizing their status. This also means that an individual with an HDHP that covers these costs may continue to contribute to a health savings account (HSA).

In Notice 2020-15 (PDF), posted today on IRS.gov, the IRS said that health plans that otherwise qualify as HDHPs will not lose that status merely because they cover the cost of testing for or treatment of COVID-19 before plan deductibles have been met. The IRS also noted that, as in the past, any vaccination costs continue to count as preventive care and can be paid for by an HDHP.

Today’s notice applies only to HSA-eligible HDHPs. Employees and other taxpayers in any other type of health plan with specific questions about their own plan and what it covers should contact their plan.

To our valued clients during the COVID-19 Virus Pandemic:

The 2020 individual tax deadline has been extended until July 15, 2020.

In the best interest of our clients and team at The Rodeheaver Group, we are asking our clients to send documents electronically or via mail, FedEx and UPS until further notice. We will be adding secure drop boxes at each of our office locations if you still prefer to drop off your documentation, but we will not be meeting with clients in our offices.

If you have any questions or concerns, please contact us at 301.334.3127 or via email at contact@rgroupcpa.com. Please visit our website at www.rgroupcpa.com for the latest updates. We also now offer payment via credit card or ACH via our website.

Please stay safe and we appreciate your business.