IRS update on novel coronavirus (COVID-19) 



The IRS announced (Notice 2020-15*) that for participants in high-deductible health plans (HDHPs), all medical care services received and items purchased associated with testing for and treatment of COVID-19 will not impact the status of the plan as an HDHP.

All major health plans have waived member cost sharing, including copays, coinsurance and deductibles for COVID-19 diagnostic testing provided at approved locations in accordance with CDC guidelines for all commercial insured, Medicaid and Medicare members. In addition, many self-insured customers are also choosing to implement similar actions.

Three major health plans, including UnitedHealthcare, have waived member cost sharing for the treatment of COVID-19 through May 31, 2020 for all fully insured commercial, Medicare Advantage and Medicaid plans. Check with your individual plan to determine your specific coverage.

This means that HSA funds are not required for COVID-19 diagnostic testing and treatment (per the above criteria) provided at approved locations in accordance with CDC guidelines. In the event that a plan is not waiving these costs, individuals will be able to use HSA funds for those costs without jeopardizing the qualified status of their high deductible health plan.

Optum Bank is actively engaged in supporting the response to COVID-19, including efforts to safeguard the health and safety of our clients and their employees. We will continue to monitor developments and provide additional guidance as available.

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