HSA

Find answers to common questions regarding HSA during our Coronavirus crisis.

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.

What is the HSA contribution deadline?

As a follow-up to IRS Notice 2020-18, the IRS has confirmed that account holders can make contributions to health savings accounts (HSAs) for the 2019 plan year up to the new filing deadline of July 15, 2020. The IRS states that contributions to an HSA may be made at any time during the year or by the due date for filing that year’s tax returns. This rule applies to the new federal income tax filing deadline for 2020, which the IRS extended in response to the COVID-19 crisis. Contact Sterling for help with your HSA contribution questions.

What Has Changed Regarding Over-the-Counter (OTC) Drugs and Menstrual Care Products

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. In addition, menstrual products are now considered a qualified medical expense, meaning consumers can pay for or be reimbursed for these products through an HSA, FSA or HRA. This provision is effective for purchases made after December 31, 2019, and for 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.