{"id":51457,"date":"2020-05-06T13:47:47","date_gmt":"2020-05-06T18:47:47","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=51457"},"modified":"2020-05-06T16:01:21","modified_gmt":"2020-05-06T21:01:21","slug":"hdhp-cover-coronavirus","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/small-business\/hdhp-cover-coronavirus\/","title":{"rendered":"Do High-Deductible Health Plans (HDHP) cover coronavirus costs?"},"content":{"rendered":"

As a small business owner, the coronavirus pandemic has likely taken a lot out of you. Not only are guidelines changing almost daily, but the ways to get financial help can be challenging to wade through.<\/p>\n

One of the latest changes is the announcement from the IRS that new high-deductible health plans (HDHP) can help ease the costs of the coronavirus.<\/p>\n

But what exactly does an HDHP help cover when it comes to the coronavirus? Here\u2019s what you need to know.<\/p>\n

What is a high-deductible health plan? \"High<\/h2>\n

Before we get into the nitty-gritty of what an HDHP covers as it relates to the coronavirus, let\u2019s break down what this type of health care plan is.<\/p>\n

An HDHP is ideal for employees who aren\u2019t prone to getting sick. Why? Because while more of the healthcare costs come out of the employee\u2019s pocket due to the high deductible, the monthly premium will be lower. Plus, if combined with a Health Savings Account (HSA)<\/a>, employees can pay for medical necessities without having to pay federal taxes on HSA contributions or distributions.<\/p>\n

To qualify to make contributions to an HSA, the HDHP can\u2019t provide benefits in any year until the deductible is met \u2014 with the exception of preventative care benefits since those do not have a deductible requirement.<\/p>\n

What is HDHP coverage for coronavirus?<\/h2>\n

What is different about HDHPs in our current situation?<\/p>\n

An HDHP can cover certain costs (like testing for coronavirus and treatment) before the deductible is reached without putting HDHP coverage status in jeopardy. This means that employees will be eligible to contribute towards their HSAs to cover their costs.<\/p>\n

Plus, the expected coronavirus vaccine will be considered preventative care by the IRS and can be covered by an HDHP outside of the deductible.<\/p>\n

What does this mean for employers?<\/h2>\n

This can mean a few things for small business employers. On March 18, President Trump signed the Families First Coronavirus Response Act (FFCRA).<\/a> Under FFCRA, the healthcare plans offered by employers, no matter the size of the company, have to provide coverage for screening and testing for COVID-19 without any cost-sharing requirements. These requirements can be items like deductibles or co-pays. This law also takes away the element of prior authorization for:<\/p>\n