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.