IRS Announces High Deductible Health Plans Can Cover COVID-19 Expenses Without Applying a Deductible

Cozen O'Connor
Contact

Cozen O'Connor

Employers across the country are currently considering what actions to put in place in light of the potential spread of COVID-19 (the coronavirus). Many employers offer their employees high-deductible health plans that can only cover certain preventive care expenses for their employees until the employee satisfies the deductible set by the plan. The IRS has just announced a high deductible health plan will not lose its high deductible health plan status if it chooses to cover “all medical care services received and items purchased associated with testing for and treatment of” the coronavirus without regard to the plan’s deductible or other cost sharing provisions. This is consistent with some states who are requiring that health insurance carriers cover various coronavirus-related expenses.

For employers that sponsor self-insured medical plans, no employer is obligated to make this change to their group health plan, but IRS Notice 2020-15 opens the door for employers to relax deductibles and other out-of-pocket limits for coronavirus-related expenses. Employers who decide to provide this coverage may have to amend their plans to provide the benefit and issue a summary of material modifications, which amends their summary plan description. Employers who wish to make this change should work with their insurance providers and/or third-party administrators.

 
 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Cozen O'Connor | Attorney Advertising

Written by:

Cozen O'Connor
Contact
more
less

Cozen O'Connor on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.