Expansion of Health Savings Account (HSA)-eligible preventive care medicines and services for chronic illnesses 

HSA-eligible preventive care benefits expansion for chronic illnesses

The IRS released notice that the list of health savings account (HSA)-eligible preventive care benefits, for those with chronic conditions, has been expanded.

IRS Notice 2019-45, effective July 17, 2019, expands the list of preventive care benefits permitted by a qualifying high-deductible health plan (HDHP) under Section 223 of the Internal Revenue Code. This change, to expand the list of preventive care benefits, applies to plans without a deductible or with a deductible below the applicable minimum deductible for an HDHP.

Here’s what you need to know:

• These medical services and items are limited to specific medical care services or items listed for the associated chronic conditions specified in Notice 2019-45 (see chart below).

• IRS explains its criteria – in consultation with HHS – that each listed service or item, when prescribed for an individual with the related chronic condition is low cost and that it has a high likelihood of preventing exacerbation of the chronic condition and/or developing a secondary condition that requires significantly higher cost treatments.

• Any medical care previously recognized as preventive care for these rules is still treated as preventive care, so while this notice clarifies that benefits for the specified services and items for individuals with the specified chronic conditions listed in the Appendix are preventive care for purposes of section 223(c)(2)(C), it does not treat these services and items as preventive care required to be provided without cost sharing for purposes of section 2713 of the PHS Act.

Notice 2019-45 provides that the following services and items for individuals with the specified chronic conditions listed are treated as preventive care: