IRS Just Gave HSAs a Prevention Booster Shot

Executive Order #13877 triggered an IRS guidance in July allowing first-dollar coverage for 14 new preventive healthcare services, making them payable through health savings accounts (HSAs) even before deductibles have been met. This reduces financial barriers to employees accessing needed preventive healthcare through high-deductible health plans (HDHPs funded through HSAs). The preventive care list includes seven drug categories and seven categories of medical screening, testing, or monitoring. The list supports care for: diabetes, asthma, heart disease, congestive heart failure, coronary artery disease, hypertension, depression, osteoporosis, and liver disease/bleeding disorders. The new rule took effect immediately on July 17; it might drive higher use of preventive healthcare even before January 2020, when most health plans begin the new plan year. Wellness and disease management programs and health plans may be scrambling to modify programs to effectively promote these new prevention opportunities in 2020. Absence management staff will want to educate their clients about the advantages afforded by this new provision. These 14 new prevention services add to the services already mandated for first-dollar coverage under the Affordable Care Act, which are clustered around immunizations, screening, and health counseling. To learn more about the expanded preventive care list, visit https://www.irs.gov/newsroom/irs-expands-list-of-preventive-care-for-hsa-participants-to-include-certain-care-for-chronic-conditions.

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