7.18.19

Susan Burnoski, CPA

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.