August 2, 2019 3:30 am

IRS Adds Preventive Care Items as Qualified Expenses for HDHPs

Distributions from health savings accounts (HSAs) to pay qualified medical expenses are not taxable. These accounts must be combined with a high-deductible health plan (HDHP). The question has been: Can an HDHP pay for preventive care without a deductible? The answer is yes, and now the IRS has added 14 new preventive care items to the list of qualified medical expenses that can be reimbursed by an HDHP (Notice 2019-45). These items are all for preventive care and are qualified expenses only if the individual has been diagnosed with a particular disease or condition. Preventive care items include:

  • Beta blockers for congestive heart failure or coronary artery disease
  • Low-density lipoprotein (LDL) testing for heart disease
  • Retinopathy screening for diabetes
  • Statins for heart disease or diabetes

The notice is effective as of July 17, 2019.

advertisement
Tax Glossary

Depreciation recapture

An amount of gain on the sale of certain depreciable property that is treated as ordinary income in the case of personal property. Recapture is computed on Form 4797.

More terms