IRS Notice 2023-37 Announces End Date for More COVID-Era Relief
With both the National Emergency and the Public Health Emergency in the rearview mirror, the IRS has released Notice 2023-37 which further terminates certain COVID relief applicable to employer health plans. Health Savings Account (HSA) qualified plans will no longer be able to cover COVID testing without deductible satisfaction as of December 31, 2024. Employers will note that prior IRS guidance* had waived the deductible requirement for HDHPs when it came to COVID testing. The Notice states “The Treasury Department and the IRS have determined that, with the end of the COVID-19 National Emergency and the PHE, the relief described in Notice 2020-15 is no longer needed.” As such, this relief will be expiring at the end of 2024.
Additionally, Notice 2023-37 specifies that COVID testing is NOT considered ‘preventive’ under the Affordable Care Act’s requirement. However, plans may still waive deductible for testing under this notice for plans years ending on or before December 31, 2024. No action is currently necessary at this time.
* IRS Notice 2020-15 permitted plans to waive deductible satisfaction for a myriad of COVID-related treatment and testing without disrupting HSA eligibility for participants