Recent IRS Notice 2024-75 expands the preventive care benefits for High Deductible Health Plans (HDHPs) under Section 223 of the Internal Revenue Code, allowing these plans to cover over-the-counter (OTC) oral contraceptives, including emergency contraceptives and male condoms, without requiring a deductible. This expansion is significant for HR benefits professionals managing HDHPs and Health Savings Accounts (HSAs).
 
Key updates include:
  1. OTC Contraceptives and Male Condoms: HDHPs can now cover OTC oral contraceptives and male condoms without a deductible, regardless of prescription status. This applies to all individuals, expanding the range of preventive care benefits under HDHPs.
  2. Breast Cancer Screenings: The definition of preventive breast cancer screenings now includes not just mammograms, but also other methods like MRIs and ultrasounds for individuals not diagnosed with breast cancer.
  3. Diabetes Management: Continuous glucose monitors are now considered preventive care for individuals with diabetes, aligning them with glucometers, provided they function similarly. Additionally, insulin products may be covered without a deductible under the new safe harbor, regardless of whether the prescription is for diabetes treatment or prevention. 
These changes allow for broader preventive care coverage under HDHPs, making it easier for employees to access essential health services without incurring high out-of-pocket costs before meeting deductibles. For HR professionals, these adjustments may affect plan design and communication strategies to ensure employees understand their expanded benefits. Effective for plan years beginning after December 30, 2022, the guidance offers flexibility in HDHP offerings, improving access to preventive healthcare.
 
Additionally, IRS Notice 2024-71 provides clarity on the interpretation of medical care expenses under section 213(d) and the specific inclusion of condoms as a deductible medical expense or as an eligible medical expense for FSAs, HRAs, and HSAs.