IRS Expands List of Preventive Care for HSA Participants

IRS Expands List of Preventive Care for HSA Participants

Please note:  In prior guidance, the IRS/Treasury have not included preventive care services or benefits meant to treat an existing condition.  With Notice 2019-45 that is changing for the better.

Important Factors:

  1.   Under a notice issued Wednesday, July 17, 2019, HDHP enrollees can deduct contributions to a HSA (Health Savings Account) for some care and drugs for certain chronic conditions.
  2.   This expansion is the Treasury Department’s response to the President’s Executive Order (from last month).
  3.    Treasury Secretary Mnuchin said the expansion of preventive benefits “will enable more Americans to exercise greater control over their medical care.”

The U.S. Treasury has expanded preventive care benefits provided by high deductible health plans for some chronic conditions.

Under a notice issued Wednesday, July 17, 2019, HDHP enrollees can deduct contributions to a Health Savings Account for medical care and prescription drugs for conditions such as diabetes, asthma, depression, and heart failure.  The expansion is the Treasury’s response to President Donald Trump’s executive order last month.

In prior guidance, the Internal Revenue Service and the Treasury have not included preventative care for services or benefits meant to treat an existing condition.

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

Preventive Care for Specified Conditions For Individuals Diagnosed with
Angiotensin Converting Enzyme (ACE) inhibitors Congestive heart failure, diabetes, and/or coronary artery disease
Anti-resorptive therapy Osteoporosis and/or osteopenia
Beta-blockers Congestive heart failure and/or coronary artery disease
Blood pressure monitor Hypertension
Inhaled corticosteroids Asthma
Insulin and other glucose lowering agents Diabetes
Retinopathy screening Diabetes
Peak flow meter Asthma
Glucometer Diabetes
Hemoglobin A1c testing Diabetes
International Normalized Ratio (INR) testing Liver disease and/or bleeding disorders
Low-density Lipoprotein (LDL) testing Heart disease
Selective Serotonin Reuptake Inhibitors (SSRIs) Depression
Statins Heart disease and/or diabetes

For additional questions and comments, please contact your Account Manager or Sales Executive.  Thank you.

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