The Internal Revenue Services is trying to make health savings accounts (HSAs) easier, and cheaper, for people with high blood pressure, high cholesterol and other chronic conditions to use.
The IRS today added many products and services aimed at people with chronic conditions to the package of preventive care benefits that an HSA-compatible high-deductible health plan, or HDHP, can offer without actually imposing the high deductible.
The IRS has included the changes in the HDHP preventive care package list in IRS Notice 2019-45.
The notice took effect today.
Congress developed the HSA to give people a tax break on saving money to pay for routine health care expenses.
A taxpayer must combine an HSA with high-deductible plan that meets IRS eligibility criteria.
For 2019, the minimum deductible for an HSA-compatible plan is $1,350 for individuals and $2,700 for families.
The maximum out-of-pocket expense limit is $6,750 for individuals and $13,500 for families.
The IRS imposes the deductible requirements to reduce the impact of the HSA program on the federal budget, and to give HSA users “skin in the game,” or some direct exposure to the actual cost of health care.