By Susan Burnoski, CPA | Principal, Audit & Assurance
If your company offers a high-deductible health plan (HDHP), an HDHP with a health savings account (HAS), or is considering an HDHP, the Treasury Department just announced additional allowable preventive care benefits, effective January 1, 2020.
This notice increases the services that can be covered as a pre-deductible expense by expanding the definition of preventive care. Simply stated, the HDHP may now pay for certain services even if the patient has not yet met their deductible. Previously, preventative care only applied to services that were not provided in response to a particular condition, such as annual physicals. The IRS will consider treatments for certain chronic conditions to be preventative.
| 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 Ale testing | Diabetes |
| International Normalized Ratio (INR) testing | Liver disease and/or bleeding disorders |
| Low-density Lipoprotein (LDL) testing | Heart disease |
| Selective Serotonin Reuptake Inhibitors (SSRls) | Depression |
| Statins | Heart disease and/or diabetes |
As Treasury just announced this change on July 17,2019, the insurance carriers have not yet had time to absorb the impact. Certainly, there will be pricing changes, but the positive impact of this announcement is projected to not only benefit participants in HDHPs but may also make this type of plan more attractive for many employers. Be sure to discuss with your insurance provider.