The Treasury and the Internal Revenue Service have rescinded pandemic-era guidance that allowed high-deductible health plans to cover COVID costs.
The IRS said, in Notice 2023-37, that for plan years starting in 2025 an HDHP will not be permitted to provide health benefits associated with testing for and treatment of COVID-19 without a deductible, or with a deductible below the minimum deductible (for self-only or family coverage) for an HDHP.
This rescinds guidance from three years ago that said HDHPs could pay for coronavirus-related testing and treatment without jeopardizing status because they covered Covid testing or treatment before plan deductibles were met. That guidance now applies only to plan years ending on or before Dec. 31, 2024.
The preventive care safe harbor also does not include screening (i.e., testing) for COVID-19 effective as of the date of publication of the notice, which will appear in the Internal Revenue Bulletin of July 24.
David Paul Morris/Bloomberg
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