COVID-19: HDHP Guidance and Scam Alert

This article addresses two issues:

Coronavirus testing and treatment for taxpayers with high-deductible health plans.

The U.S. Treasury Department Issues a COVID-19 Scam Warning

COVID-19 Testing and Treatment with High-Deductible Health Plans

The Internal Revenue Service has advised that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment without jeopardizing the plan’s status. This also means that an individual with an HDHP that covers these costs may continue to contribute to a health savings account (HSA).

In Notice 2020-15 (PDF), the IRS said health plans that otherwise qualify as HDHPs will not lose that status merely because they cover the cost of testing for or treatment of COVID-19 before plan deductibles have been met. The IRS also noted that, as in the past, any vaccination costs continue to count as preventive care and can be paid for by an HDHP.

This notice applies only to HSA-eligible HDHPs. Employees and other taxpayers in any other type of health plan with specific questions about their own plan and what it covers should contact their plan.

COVID-19 Scam Alert

If you receive calls, emails, or other communications claiming to be from the Treasury Department and offering COVID-19 related grants or stimulus payments in exchange for personal financial information, or an advance fee, tax, or charge of any kind, including the purchase of gift cards, please do not respond. These are scams. Please contact the FBI at www.ic3.gov so that the scammers can be tracked and stopped.

We know these are uncertain times. At Bayshore CPA’s, P.A., it is our hope that you follow guidelines mandated by the CDC and your local leaders. Stay safe and healthy.