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On October 17, 2024, the IRS released Notice 2024-75 (the Notice), expanding preventive care benefits under high deductible health plans (HDHPs) without or with reduced deductibles. The list will now include over-the-counter (OTC) oral contraceptives and male condoms, regardless of whether they are purchased with a prescription.
The Notice also highlights that these items and services now qualify as preventive care for HDHPs: all types of breast cancer screenings for those without breast cancer, continuous glucose monitors for diabetes patients, and selected insulin products for treatment or prevention.
HDHPs and Preventive Care
To contribute to a health savings account (HSA), individuals need coverage under a HDHP without any disqualifying health coverage. An HDHP can only pay benefits after meeting its minimum deductible, except for preventive care, which can have a low or no deductible. According to the Affordable Care Act, non-grandfathered plans must cover preventive services at no cost when prescribed.
Effective Dates
The Notice's changes for HDHPs come with varied retroactive dates. IRS guidance for OTC oral contraceptives and male condoms starts from December 30, 2022. Other dates include April 12, 2004, for breast cancer screenings; July 17, 2019, for glucose monitors; and post-December 31, 2022, for selected insulin products.
Action Steps
Employers with HDHPs should review their plans’ design and consider whether to cover the OTC items without a deductible. Download the bulletin for more details.
National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.
