This is kind of a BIG DEAL! Health Saving Account (HSA) have traditional only covered many of the services listed below after the medical deductible. Individual can now get medication and care for many critical services before their medical deductible. As is HSA plans weren’t cool enough already, they now have everything a person could want. Check out the details below:
In Notice 2019-45, the IRS has expanded the list of preventive care benefits permitted to be provided by a high deductible health plan (“HDHP”) either without a deductible or with a deductible below the applicable minimum deductible (self-only or family) for an HDHP.
Medical care, including prescription drugs, for certain chronic conditions will now be classified as preventive care for someone diagnosed with that condition. The new guidance also adds to the types of medical care that now can be treated as “preventive.” According to the Notice, preventive care includes, but is not limited to, the following:
· Periodic health evaluations, including tests and diagnostic procedures ordered in connection with routine examinations, such as annual physicals
· Routine prenatal and well-childcare
· Child and adult immunizations
· Tobacco cessation programs
· Obesity weight-loss programs
· Certain screening services or devices
· Mental Health Services & Rx
Preventive care did not generally include any service or benefit intended to treat an existing illness, injury, or condition. Treatment of a related condition made during a preventive care or screening was considered to be preventive care when it would be unreasonable or impracticable to perform another procedure to treat the condition and such treatment would be considered to be incidental or ancillary to a preventive care service or screening. For example, the removal of polyps during a diagnostic colonoscopy would be considered preventive.
Drugs or medications were part of preventive care when taken by an individual who has developed risk factors of a disease that had not yet manifested itself or not yet become clinically apparent or to prevent the reoccurrence of a disease from which a person has recovered. Examples included treatment of high cholesterol with cholesterol-lowering medications to prevent heart disease or the treatment of recovered heart attack or stroke victims with Angiotensin-converting Enzyme (ACE) inhibitors to prevent reoccurrence.
What I’ve noticed is each medical carrier is interpreting this law a little differently. Most medical carriers cover certain drugs and critical services before your medical deductible; however, each carrier has put their own twist on the law. This law is effective 1/1/2020, so please check with your Broker or insurance carrier to see what preventative drugs and services are covered before your deductible on your HSA plan.
For additional details, see the entire notice and corresponding Appendix at Notice 2019-45.