The Internal Revenue Service is expanding the list of preventive care benefits that can be offered by high deductible health plans without a deductible to include oral contraceptives, male condoms, breast cancer screening and glucose monitors.
The IRS stated in a notice that Section 223(c)(2)(C) of the Internal Revenue Code will also allow those benefits to be offered with a deductible below the applicable minimum deductible for the HDHP. Generally, an HDHP is prohibited from providing benefits for a given year until the minimum deductible for that year is satisfied. However, section 223(c)(2)(C) provides a “safe harbor” allowing an HDHP to waive the deductible for preventive care.
The IRS notice states that breast cancer screening for anyone who has not been diagnosed with breast cancer is considered preventive care. Continuous glucose monitors for anyone diagnosed with diabetes now are generally treated as preventive care under the section.
The expanded safe harbor list includes certain insulin products without regard to whether the product is prescribed to treat someone diagnosed with diabetes or prescribed for the purpose of preventing the exacerbation of diabetes or the development of a secondary condition.
The expanded list includes U.S. Food and Drug Administration-approved contraceptives, including those listed in the FDA’s Birth Control Guide, such as “oral contraceptives (progestin only)” and “emergency contraception (levonorgestrel).”
