On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022. One important provision of the act for employers is the expansion of coverage of insulin under high deductible health plans (HDHPs).
Effective for plan years beginning on or after December 31, 2022, HDHPs will be permitted to cover insulin for broader range of uses than before, prior to satisfaction of the deductible, without negatively affecting a participant’s eligibility to contribute to a health savings account (HSA).
The Act updates the prior guidance and expands its coverage as part of Section 223(c) of the Internal Revenue Code of 1986, by allowing an HDHP to cover “selected insulin products” prior to the deductible, without regard to whether the individual has been diagnosed with diabetes. Section 223(c) defines “selected insulin products” as any dosage form (including vial, pump, or inhaler) of any type of insulin (rapid-acting, short-acting, intermediate-acting, long-acting, ultra long-acting, and premixed).