On March 5, 2018, the IRS issued Notice 2018-12 that provides some relief on this issue. The notice states that:
- Male sterilization is NOT preventative care
- Male sterilization must include cost sharing payments such as deductibles/co-pays
- High Deductible Health Plan (HDHP) policies that mandate payments for male sterilization without cost sharing are NOT qualified for HSA contributions.
The IRS also lowered the allowable HSA family contribution for 2018 by $50 to $6,850, instead of $6,900 as the IRS had previously announced. The contribution limit for individuals for 2018 remains at $3,450.