Updated IRS Rules for HSAs & Preventive Care

March 2017

On September 10, 2013, the IRS issued Notice 2013-57 modifying the definition of “preventive care” for purposes of the HSA-qualified health plans (aka HDHPs). Essentially, this new guidance removes any potential conflict between the different definitions of preventive care under the ACA and the HSA statutes.

Coverage of preventive care is required for all plans (including HSA-qualified plans) under the Affordable Care Act, and the services must be provided without cost-sharing (i.e., no deductibles, copays, or coinsurance). The scope of covered services is prescribed by the law and federal regulations.

This new IRS notice clarifies that HSA-qualified plans won’t violate the HSA requirements if they cover the ACA-mandated preventive care services. In addition, HSA-qualified plans may cover other services as “preventive care” as permitted by the original IRS guidance and still remain HSA-qualified.

To learn more about the these updated rules and their impact, please visit Peel & Holland University. We have posted a document entitled Updated IRS Rules for HSAs & Preventive Care.

Peel & Holland continues to monitor progress of the health care reform developments for workplace wellness programs and will keep you informed of important updates.

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