New Definition of High Deductible Health Plans 

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Published  July 22, 2019

 

President  Donald  Trump  issued  an  executive  order  last  month  aiming  to  improve  price  and  quality transparency  in  the  healthcare  industry.  Among  other  things,  the  executive  order  called  for  the Department  of  Treasury  to  issue  regulations  that  would  allow  qualified  high  deductible  health  plans (HDHPs) to provide low-cost preventive services  for individuals with chronic medical conditions  prior to the deductible being satisfied.  Coverage for these services  prior to the deductible being satisfied  would not disqualify an individual from establishing and contributing to a  Health Savings Account  (HSA)  like it has in the past.

On July 17, 2019, the Department of Treasury issued  Notice 2019-45  which has expanded the types of services  an HDHP can cover  prior to the deductible being satisfied.  These services are in  addition  to the preventive  care  benefits  which  are  currently  allowed.  A summary of  the  new  services  which  can  be covered before the deductible is outlined below:

The regulations included in Notice 2019-45 are effective as of the publish date (July 17, 2019).