Preventive Care Classification Expands to Cover Certain Chronic Conditions for High Deductible Health Plans and HSAs
On June 24, 2019, President Trump issued an executive order directing the IRS and Treasury Department to provide guidance, within 120 days of the order, on the expansion of preventive care benefits to be covered before the deductible in high deductible health plans (HDHPs) to include low cost care for specific chronic conditions.
On July 17, 2019, the IRS in conjunction with the Treasury Department and with consultation from the Department of Health and Human Services (HHS), released Notice 2019-45 expanding the preventive care classification to include low cost medical services, including certain prescriptions, incurred to treat a limited list of chronic medical conditions (see below).
As a background, to meet eligibility requirements to offer a Health Savings Account (HSA), employers must offer an HSA qualified health plan that requires a statutory minimum deductible for medical services, excluding services deemed preventive, before the health plan can provide payment. This expansion of the preventive category to include care for the chronic conditions specified above could make HSA qualified health plans a better fit for subscribers managing these conditions and potentially result in lower out-of-pocket expenditures for these individuals.
Flores will continue to monitor developments. Please contact an account manager or business development director at 800.532.3327 with questions.
| 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 A1c testing | Diabetes |
| International Normalized Ratio (INR) testing | Liver disease and/or bleeding disorders |
| Low-density Lipoprotein (LDL) testing | Heart disease |
| Selective Serotonin Reuptake Inhibitors (SSRIs) | Depression |
| Statins | Heart disease and/or diabetes |
About Flores
Flores is a leading national administrator of tax-advantaged reimbursement plans including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs) and Commuter Benefit Accounts (CBAs). In addition to these account-based benefit options, they also handle COBRA and other direct bill services to meet the compliance needs of the employers they serve. In 2018, Flores introduced life.balanced. Reimbursement Accounts (LBA), an affordable post-tax lifestyle reimbursement account for the culture-driven employer. Based in Charlotte, NC, Flores has emerged as the leader in the CDHP market through a service model founded upon innovative technology, dedicated professionals, and an uncompromising commitment to superior service. For more information, visit the Flores website and follow them on LinkedIn.
- Cindy Bistany
- Director of Business Development and Strategic Alliances
- (828) 693-3595
- cindy@flores247.com
- Clay Peddycord, GBA, CFC
- Director of Business Development and Strategic Alliances
- (800) 532-3327
- clay.peddycord@flores247.com
- Aaron Hunt, MBA, CDHC, HSAe, Certified COBRA Administrator
- Director of Business Development and Strategic Alliances
- (800) 532-3327
- aaron.hunt@flores247.com