IRS Update

IRS Update to HSA Coverage

Effective July 17, 2019, high deductible health plans (HDHPs) can now provide pre-deductible coverage for certain chronic conditions without jeopardizing a participant’s Health Savings Account (HSA) eligibility.

Individuals covered by an HSA may establish and deduct contributions to an HSA as long as they have no disqualifying health coverage. HSAs are a valuable tool that offer significant savings over traditional insurance plans because it allows employees to utilize it as a deductible funding vehicle or retirement savings strategy. IRS Notice 2019-45 expands the list of preventive care benefits that HDHPs paired with HSAs can cover before enrollees have met the deductible. This notice has been issued in response to President Trump’s executive order to expand the flexibility of HSAs and HDHPs consistent with provisions of Section 223.

The preventative services now available to participants are as follows:

Should you have any additional questions regarding the new regulation, please contact your dedicated FBA Administrator during our operating hours Monday through Friday 8:30 am – 5:00 pm EST at (800) 437-3539.