Group of medics discuss x-ray scan
ComplianceTax & AccountingAugust 29, 2022

Health Savings Accounts: Health plan pre-deductible coverage for insulin allowed next year

Health Savings Account (HSA) regular contribution eligibility requires that an individual be covered under a high deductible health plan (HDHP). Generally, an HDHP will not be considered an HSA-eligible HDHP if the plan provides any benefit before the insured individual’s deductible is met, however, there are exceptions to this rule.

The recent Inflation Reduction Act includes a provision which will take effect January 1, 2023, that will allow an HDHP to provide coverage for preventive care insulin-related needs before an insured individual’s deductible is met without disqualifying the health plan as an HSA-eligible HDHP. Selected insulin products include any dosage form (such as vial, pump, or inhaler) of any different type (such as rapid-acting, short-acting, intermediate-acting, long-acting, ultralong-acting, and premixed) of insulin.

Current rules allow an HDHP to provide benefit coverage for insulin-related needs before an individual’s deductible is met for chronic cases only.

For an opportunity to learn more about IRAs and other tax-advantaged accounts, including Health Savings Accounts and Coverdell Education Savings Accounts, consider the Wolters Kluwer IRA Library or 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.
Mike Schiller
Manager, Specialized Consulting, Tax Advantaged Accounts
With more than 25 years of experience, Mike has worked closely with hundreds of financial organizations to help them create, implement, and maintain their tax-advantaged accounts program.
Back To Top