April 22, 2020 11:10 pm

HDHPs Can Cover COVID-19 Expenses

Having coverage through high deductible health plan (HDHP) is a prerequisite for contributing to a health savings account (HSA). Typically, HDHPs require you to exhaust the policy’s deductible before insurance coverage kicks in. However, as part of the nation’s response to the  Novel Coronavirus (COVID-19), the IRS has ruled that HDHPs can cover testing for and treatment of the virus without causing the coverage to be disqualified (Notice 2020-15). This means that HDHPs can offer testing for and treatment of COVID-19 without the application of a deductible or cost sharing.

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Tax Glossary

Installment sale

A sale of property that allows for tax deferment if at least one payment is received after the end of the tax year in which the sale occurs. The installment method does not apply to year-end sales of publicly traded securities. Dealers may not use the installment method. Investors with very large installment balances could face a special tax.

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