On September 29, 2023, the IRS released the 2023 instructions for Form 8889. Employees use this form to report HSA contributions and distributions.
Of note are the mentions of the changes to HSA administration since the end of the COVID-19 emergency. The instructions mention that the preventive care safe harbor no longer applies to COVID-19 testing, although it remains a qualified medical expense subject to the minimum deductible. An HDHP may pay for medical care services and items purchased related to testing for and treatment of COVID-19 before satisfying the applicable minimum deductible; however, this only applies to plan years ending on or before December 31, 2024.
In addition, the instructions mention that for plan years beginning in 2023 or 2024, an eligible individual may have separate coverage for telehealth and other remote care in addition to an HDHP. An HDHP may have no deductible (or a deductible below the minimum annual deductible) for telehealth and other remote care services. The instructions also note that, for plan years beginning after 2022, an HDHP may have a zero deductible for selected insulin products.
These instructions apply to employees, who should consult with their own tax advisors if they have questions concerning this form. However, employers should be familiar with the form and the changes to HSA administration reflected in the form.
2023 Instructions for Form 8889 »
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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