On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act. Included in the legislation are some significant changes to Health Savings Accounts (HSAs), which among other things adds to the list of expenses that are considered eligible to be paid for with a tax-free HSA distribution.
Specifically, section 3702 of the CARES Act removes the requirement that a medicine or drug must be prescribed to be considered a qualified medical expense (i.e., over-the counter medicines are covered) and adds menstrual care related product costs to the list of qualified medical expenses that can be paid for with a distribution from an HSA beginning in 2020. Also, section 3701 of the CARES Act makes a couple changes relating to telehealth services, providing, for example, that a high deductible health plan shall not fail to be an HDHP for failing to include a deductible for telehealth or other remote care services.
Wolters Kluwer will continue to analyze the CARES Act’s impact on HSAs. We expect updated rules as well as additional information and guidance to be forthcoming from the IRS.
For an opportunity to learn more about IRAs and other tax-advantaged accounts including Health Savings Accounts and Coverdell Education Savings Accounts, consider our on-demand video training offered on a variety of topics. Go here to learn more about training opportunities available to you, or call us at 1-800-552-9408.