On July 17, 2019, the Department of the Treasury (the “Treasury Department”) and the Internal Revenue Service (the “IRS”) jointly issued Notice 2019-45, which notice expands the preventive care benefits that may be provided through a high deductible health plan (an “HDHP”) without a deductible or with a deductible that falls below the applicable minimum deductible for an HDHP under the Internal Revenue Code. One of the requirements for an HDHP is that the plan generally not provide reimbursement for healthcare expenses for any year until the minimum deductible set forth in the Internal Revenue Code is satisfied. However, the Internal Revenue Code contains an exception from the minimum deductible requirement for “preventive care.” Employees who participate in HDHPs frequently establish health savings accounts that may be used to pay qualified medical expenses (including deductibles and other out-of-pocket healthcare expenses).
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