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As COVID-19 cases continue to rise in certain regions, many Americans are still grappling with the financial effects of the pandemic. In response, lawmakers have introduced several relief measures, including provisions that make health savings accounts more accessible during this challenging time. These are the most significant changes to HSAs since March.
Complimentary COVID-19 Testing
The Families First Coronavirus Response Act (FFCRA) now guarantees free COVID-19 testing under all workplace health insurance plans. This means you can get tested for the coronavirus without having to pay deductibles, co-pays, or co-insurance fees.
In general, high-deductible health plans can lose eligibility for health savings accounts if they provide certain services before the deductible is met. However, the IRS has waived this rule to make it easier for people to get tested for the coronavirus.
Covering the Expenses of Telehealth Services
As COVID-19 cases remain high in many areas, you might be wary of in-person visits with your healthcare provider. Fortunately, the CARES Act has made telehealth services more accessible through 2021, and you can temporarily use your health savings account to cover virtual consultations without needing to meet a deductible. This change will not affect your health savings account eligibility.
Over-the-Counter Products Without a Prescription
A benefit introduced by the CARES Act: The IRS now recognizes a broader range of “qualified medical expenses.” You can now use your health savings account card to buy certain over-the-counter items without needing a prescription. These items include pain relievers, allergy medications, and menstrual products like tampons, pads, liners, cups, and sponges.
Covering Healthcare Emergencies
It’s wise to set aside funds for healthcare emergencies, even when a global pandemic isn’t in the picture. You never know when you’ll need medical attention or have to pay for a costly prescription. As long as your health savings account was open when the expense arises, there’s no deadline to reimburse yourself.
As an added benefit, your health savings account provides three tax advantages: a deduction for your contributions, tax-free growth, and the ability to withdraw funds at any time (without taxes or penalties) to cover qualified medical expenses. Now, more than ever, there are many reasons to make use of your HSA.
