A tour operator, wearing a protective mask, gestures as he leads a tour near the US Capitol in Washington, DC on March 9, 2020.
Andrew Caballero-Reynolds | AFP | Getty Images
High-deductible health insurance plans may cover the cost of coronavirus testing and treatment — without individuals having to meet their deductibles, the IRS said on Wednesday.
People with high-deductible insurance coverage must spend a specified amount of money each year before their insurance plan begins to pay for expenses.
Tax-advantaged health savings accounts work alongside these plans to help people meet the deductible.
In 2020, annual deductibles in high-deductible plans must be at least $1,400 for self-only coverage or $2,800 for family coverage, an expense that could dissuade people from seeking medical attention if they need it.
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The IRS announcement on Wednesday takes down that barrier for people affected by coronavirus.
“This is a good thing,” said Carolyn McClanahan, a physician and certified financial planner at Life Planning Partners in Jacksonville, Florida.
“The problem is that people avoid going in because they don’t have the money to hit the deductible.”
Vaccines would continue to be considered preventive care, the IRS said.
Be aware that while the taxman is permitting high-deductible plans to foot the bill for coronavirus testing and treatment, there’s no guarantee that your plan will go along with the guidance.
It’s not a mandate from the tax authority.
Make sure you contact your insurer or your human resources department to see where your plan stands.
“Nothing is compelling those plans to pay,” said McClanahan.
CNBC reporter Bertha Coombs contributed to this report.