The IRS released a notice today IR-2020-54 which states that high-deductible health plans can cover the costs related to testing and treatment of the 2019 Novel Coronavirus (COVID-19).
This is important for a number of reasons. First, a high deductible health plan is setup so that the person insured usually has to pay a high deductible before any insurance benefits kick in. For better or for worse, the way out medical system is setup, anyone on a high deductible health plan would most likely reach their deductible limit with any treatment for the coronavirus.
This doesn’t mean the insurance company will automatically cover the costs, it’s just that they can cover the costs without jeopardizing their high-deductible heath plan status. This status is important for taxpayers who contribute to a Health Savings Account (HSA). These accounts allow you to put in money pre-tax and then use the funds for healthcare related expenses.
We’ll have to watch for more information and responses from the insurance carriers to see if they’ll still require the patient to pay the deducible before they get insurance benefits.
You can read more about this from Kelly Erb on her Forbes piece here: https://www.forbes.com/sites/kellyphillipserb/2020/03/11/irs-confirms-high-deductible-health-plans-hdhps-can-cover-coronavirus-costs/#1c2c587323ed
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