IRS Provides Guidance on COVID-19 Testing Coverage, HSAs & Associated HDHPs

March 12, 2020

On Wednesday, March 11, the IRS issued Notice 2020-15 allowing HSA-qualified health plans to cover testing and treatment of the coronavirus.

In summary, the notice states that (until further guidance is offered) a health plan that otherwise satisfies the requirements as a High-Deductible Health Plan (HDHP) will not fail to be an HDHP due to providing benefits for testing and treatment of COVID-19 without meeting the deductible. This is a response to eliminate barriers to quick and affordable treatment without impact to participant eligibility status to contribute to an HSA.

It is also important to continue to observe all current regulatory guidance with regard to participant benefit eligibility, health privacy per HIPAA, Americans with Disabilities Act (ADA), and Family Medical Leave Act (FMLA), along with important liability policy coverage considerations. As general overall health of the public is impacted, workforce planning should consider FMLA and/or COBRA. Employers should consult their plan documents on how to handle these situations.