Today, March 11, 2020, the Internal Revenue Service (“Service”) has provided temporary guidance for High Deductible Health Plans in response to the rapid spread of the Coronavirus (COVID-19).  Employers are asking daily for guidance regarding how to manage their workforces to minimize the spread of the disease while complying with applicable employment laws.  Testing and treatment for the disease is a top priority for many.

In response, the Service has issued Notice 2020-15 allowing High Deductible Health Plans to offer emergency response to the current COVID-19 crisis.  In order to meet the Internal Revenue Code definition of a “High Deductible Health Plan,” a plan typically must require participants to meet minimum deductibles and maximum out-of-pocket expenses.  The Service is temporarily waiving these requirements in order to eliminate potential administrative and financial barriers to testing and treatment for COVID-19.  Thus, a plan may provide testing and treatment for COVID-19 without the application of a deductible or cost sharing.  This Notice clarifies that plan participants may continue to contribute to HSA accounts while still receiving these emergency benefits.  Note that ordinary vaccination will continue to be treated as preventative care, which the statute exempts from these requirements.

If you have any questions please call either Richard C. Smith or Otto S. Shill of the Tax, Estate Planning, and Employee Benefits Practice Group.