In light of the current COVID-19 pandemic, employees have the opportunity to take advantage of the loosened requirements regarding how they can spend their health savings account (HSA) dollars.
- Employees can now utilize their HSA dollars to pay for telehealth services, over-the-counter (OTC) medications, feminine hygiene products and more.
- Many HSA qualifying health plans are now covering COVID-19 testing and treatment before an employee meets their deductible.
- If an employee’s plan does not cover COVID-19 expenses, they are now able to use their HSA dollars to pay for testing.
- If employees would like to help a friend or loved one who is going through a difficult time, they are now able to contribute to that individual’s HSA by check or electronic transfer. This can be a great way to help someone save for the future by providing the financial cushion necessary for treatment and services.
Traditionally, HSAs are a popular type of tax-exempt medical savings account available to individuals enrolled in high deductible health plans (HDHPs). Individuals can use their HSAs to pay for expenses covered under the HDHP until their deductible has been met; or they can use their HSAs to pay for qualified medical expenses, as defined by the IRS, that are not covered under the HDHP.
Employers are encouraged to equip employees with the information needed to be knowledgeable healthcare consumers. Employees across the nation are concerned about what the future holds, therefore it’s important for them to use income wisely and have an understanding of what is available to them.
“Now more than ever, the HSA is a valuable tool to help with financial and health concerns. Employers should take the opportunity to educate their employees about how they can make the most of their HSA during the current crisis.”
Alison Moore, Vice President of Marketing at HealthSavings
Information provided by Employee Benefit News. For more details on HSAs, click here.