The IRS recently released guidance (Notice 2024-75) expanding the list of preventive care benefits permitted to be provided by a high deductible health plan (HDHP) under Section 223(c)(2)(C) without a deductible, or with a deductible below the applicable minimum deductible for the HDHP.
Effective for plan years that begin on or after Dec. 30, 2022, Notice 2024-75 generally provides the following:
- Preventive care for purposes of Section 223(c)(2)(C) includes all benefits for OTC oral contraceptives for a covered individual potentially capable of becoming pregnant, including, but not limited to, OTC birth control pills and emergency contraception, regardless of whether they are purchased with a prescription.
- Preventive care for purposes of Section 223(c)(2)(C) includes all benefits for male condoms, regardless of whether they are purchased with a prescription and regardless of the gender of the individual covered under the HDHP who purchases them.
- The reference in Notice 2004-23 to breast cancer screening should be changed to “Breast Cancer (e.g., mammograms, magnetic resonance imaging (MRIs), ultrasounds, and similar breast cancer screening service),” effective as of the date of publication of the notice (April 12, 2004).
- Preventive care for purposes of Section 223(c)(2)(C) includes all benefits for continuous glucose monitors that have preventive care functions.
- An HDHP may provide benefits for Section 223(c)(2)(G) insulin products before and individual satisfies the minimum annual deductible for an HDHP under Section 223(c)(2)(A), whether prescribed for treatment or prevention.
The IRS also released Notice 2024-71 to provide a safe harbor that treats amounts paid for condoms as amounts paid for medical care under Section 213(d).
Section 213 generally allows an individual taxpayer an itemized deduction for expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, the taxpayer’s spouse, or the taxpayer’s dependent, to the extent that such expenses exceed 7.5% of the taxpayer’s adjusted gross income.
In addition, amounts treated as paid for medical care under Section 213(d) are generally eligible to be paid or reimbursed under a health FSA, Archer MSA, HRA, or HSA. However, if an amount paid for medical care is paid or reimbursed under a health FSA, Archer MSA, HRA, HSA, or any other health plan or otherwise, it is not a deductible expense under Section 213.
Contacts:
Content disclaimer
This content provides information and comments on current issues and developments from Grant Thornton Advisors LLC and Grant Thornton LLP. It is not a comprehensive analysis of the subject matter covered. It is not, and should not be construed as, accounting, legal, tax, or professional advice provided by Grant Thornton Advisors LLC and Grant Thornton LLP. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this content.
For additional information on topics covered in this content, contact a Grant Thornton professional.
Grant Thornton LLP and Grant Thornton Advisors LLC (and their respective subsidiary entities) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. Grant Thornton LLP is a licensed independent CPA firm that provides attest services to its clients, and Grant Thornton Advisors LLC and its subsidiary entities provide tax and business consulting services to their clients. Grant Thornton Advisors LLC and its subsidiary entities are not licensed CPA firms.
Tax professional standards statement
This content supports Grant Thornton Advisors LLC’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. It is not, and should not be construed as, accounting, legal, tax, or professional advice provided by Grant Thornton Advisors LLC. If you are interested in the topics presented herein, we encourage you to contact a Grant Thornton Advisors LLC tax professional. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal, tax, or professional advice provided by Grant Thornton Advisors LLC. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact a Grant Thornton Advisors LLC tax professional prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton Advisors LLC assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.
Grant Thornton Advisors LLC and its subsidiary entities are not licensed CPA firms.
More tax hot topics

No Results Found. Please search again using different keywords and/or filters.
Share with your network
Share