HSA-qualified High Deductible Health Plans (HDHPs) are prohibited from covering any benefits before the deductible is met, except for IRS-approved preventive care services. Male contraceptive services are not currently included on the list of IRS-approved preventive care services. In May 2017, the Maryland Insurance Administration asked the IRS to add these services to their list of preventive services, but they have not yet responded.
Emergency legislation to address this issue is expected to be introduced to the Maryland General Assembly when they reconvene on January 10. However, this legislation might not be retroactive until January 1, 2018. Therefore, it is possible that HSA contributions made January 1, 2018 through the resolution date might be disallowed and potentially subject to penalties. If you plan to make HSA contributions in Maryland for 2018, we recommend waiting until a resolution to this issue has been achieved to avoid having your contributions disallowed or penalized.
Please contact our office if you have any further questions regarding Maryland HSAs.