Inflation Reduction Act Expands Insulin Coverage Under HDHPs

The Inflation Reduction Act contains a provision that could benefit participants in HDHPs. Typically, HDHPs cannot provide coverage prior to satisfying the plan's deductible except for certain preventative care services. Effective for tax years beginning after December 31, 2022, HDHPs will be permitted to cover insulin for a broader range of uses than under prior law. This coverage will be permitted prior to the participant satisfying the plan deductible and will not adversely affect a participant’s eligibility to contribute to a health savings account. Going forward, HDHPs will be permitted to cover selected insulin products before the deductible is satisfied regardless of whether the participant has been diagnosed with diabetes. "Selected insulin products” is defined to include any dosage form, including vials, pumps, or inhalers of any type of insulin. For more information on the rules governing HDHPs, visit Tax Facts Online. : Q 394. Note: Q is updated.