IRS Addresses Male Sterilization and Male Contraceptive Benefits and HSA Eligibility

From Thompson Reuters:

The Internal Revenue Service (IRS) has issued Notice 2018-12, which provides that health plans that offer benefits for male sterilization or male contraceptives without a deductible (or with a deductible below the minimum annual deductible for high deductible health plans (HDHPs) under the rules for health savings accounts (HSAs)) do not qualify as HDHPs. The notice includes transition relief until 2020 for individuals enrolled in plans that do not qualify as HDHPs under this guidance. ... 

Notice 2018-12 

In Notice 2018-12, the IRS takes the position that benefits for male sterilization and male contraceptives are not preventive care under Code Section 223. As a result, a health plan that provides benefits for male sterilization and contraceptives without satisfying the minimum deductibles for HDHPs under the Code's HSA rules is not an HDHP. These requirements apply regardless of whether coverage of such benefits is required by state law.
An individual who is not covered by an HDHP for a month is not an eligible individual under the HSA rules and may not, as a result, deduct HSA contributions for that month. In addition, HSA contributions made by an employer on behalf of such an individual are not excludible from income and wages. ....