August 11, 2020

Volume X, Number 224

August 11, 2020

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August 10, 2020

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IRS Issues Guidance on COVID-19 Coverage for High Deductible Health Plans

In response to the Coronavirus (“COVID-19”), the Internal Revenue Service advised that a health plan that otherwise satisfies the requirements to be a High Deductible Health Plan (“HDHP”) under section 223(c)(2)(A) will not fail to be an HDHP merely because the health plan provides medical care services and items purchased related to testing for and treatment of COVID-19 prior to the satisfaction of the applicable minimum deductible. As a result, the individuals covered by such a plan will not fail to be eligible individuals for purposes of whether their contributions to HSAs are deductible.

The notice provides HDHPs the flexibility to provide health benefits for testing and treatment of COVID-19 without application of a deductible or cost sharing. The notice directs individuals to consult their particular health plan regarding the plan’s coverage of testing and treatment of COVID-19, including the potential application of any deductible or cost sharing. As a result TPAs and employers should be prepared to provide such information. 

© Polsinelli PC, Polsinelli LLP in CaliforniaNational Law Review, Volume X, Number 72

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About this Author

William Sweeney Employment Attorney Polsinelli
Shareholder

William Sweeney provides clients with practical solutions to solving complex employee benefit issues.Whether he is assisting clients with the design of new benefit plans or working through a government audit of existing plans, Bill is relied upon as a trusted member of clients’ benefits compliance teams.

As the laws governing employee benefits evolve in areas ranging from health care reform to pension protections, he is devoted to ensuring clients are aware of the latest compliance efforts and trends for providing comprehensive benefit programs to their employees.

Bill works...

312.873.3664
Rafael Ramos Aguirre Employment Attorney Polsinelli Law Firm
Associate

As an associate in the Employee Benefits and Executive Compensation practice, Rafael focuses his practice on a variety of employee benefits matters. Rafael partners with Polsinelli attorneys on designing and implementing qualified plans, health and welfare plans and non-qualified compensation arrangements. Rafael provides counseling services that align legal strategies with clients’ business objectives.

Prior to joining the firm, Rafael served as Polsinelli summer associate and law clerk. His experience includes drafting individually designed plans, resolutions and amendments; addressing deferred compensation issues involving 409A; helping employers navigate EPCRS; and other employee welfare considerations. He also has experience working with ESOPs and other profit sharing plans.

816.572.4602