The IRS has rescinded pandemic-era guidance that allowed high-deductible health plans (HDHPs) to cover COVID costs.
In Notice 2023-37, the IRS said it will not permit an HDHP to cover 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 as of the end of 2024.
The notice rescinds guidance from three years ago that said HDHPs could pay for coronavirus-related testing and treatment without jeopardizing status because they covered COVID-19 testing or treatment before meeting the plan deductibles. Learn more.