IRS expands list of preventive care services
Have employees with high deductible plans? Here's what you need to know:
This summer, the IRS expanded the list of preventive care benefits that can be covered by a high deductible plan before the deductible is met.
Why does this matter? In a high deductible plan, only preventive care is covered before the consumer meets their deductible. The longer list of accepted services means more care will be covered at no or low-cost to employees covered under your benefits plan.
The newly-covered services only apply when prescribed to treat a person diagnosed with a specific chronic condition, and when prescribed for the purpose of preventing exacerbation of that chronic condition or the development of a secondary condition.
What else should I know?
The IRS has also released the HSA contribution limits for 2020 – check those out here, and be sure to share with employees. Employees may want to increase their contributions at the end of the year to maximize their accounts in 2020.
Also, we know benefits are highly regulated and complex – which is why most employers work with a trusted advisor. These advisors employ a variety of plan designs and funding options to ensure employers are getting the most value for their benefits dollars, including HSA-based plans.
This complexity has traditionally been difficult to manage outside of paper-based enrollments, but employers have more software solutions to handle these responsibilities than ever before.
Using an HR administration software supported by a benefits advisor ensures that the system can manage the exact plan design and funding strategy your organization uses.
And since benefits are generally an organization's second-largest business expense, aside from payroll, it's important to make sure your system can properly manage the large investment you're making in employee benefits.
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