House Passes Bill to Allow Pre-Deductible Treatment of Chronic Conditions for HDHPs

The House has recently passed a bill that would allow high deductible health plans (HDHPs) to provide coverage to treat chronic health conditions before the plan participant meets their annual deductible.  HDHPs generally cannot provide coverage before the plan participant meets their deductible, with the exception of care that is classified as preventative.  If an HDHP covers non-preventative medical treatment before the participant meets their annual deductible, it can disqualify plan participants from contributing to HSAs.  The new legislation would expand the list of preventative care to allow HDHPs to cover certain medical items and services that are designed to manage chronic conditions, such as coronary artery disease, liver disease, asthma, depression and heart disease.  The legislation would codify IRS Notice 2019-45.  For more information on the rules governing HDHPs, visit Tax Facts Online. Read More: Link to Q8828.