In response to the present health crisis, the IRS issued Notice 2020-15, which permits Health Savings Account (HSA)-compatible high deductible health plans (HDHPs) to cover the testing and treatment of COVID-19 without deductible or other cost sharing. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) further relaxed the HDHP rules to allow the coverage of all telehealth and other remote services without deductible and cost-sharing. The telehealth exception became effective March 27, 2020 and will remain in effect through plan years beginning on or before December 31, 2021. The CARES Act also added over-the-counter drugs without a prescription and menstrual care products to the list of HSA-eligible expenses.

At this time, the only coverage required to be at 100% with no cost-sharing is for the diagnostic testing for COVID-19 and services related to the testing as was mandated by the Families First Coronavirus Response Act (FFCRA).

If you have any questions or concerns about the recent legislative actions related to COVID-19 and your health plan, please contact your Foster & Foster consultant for assistance.