Internal Revenue Service

New Maryland law requiring full insurance coverage for vasectomies could invalidate health savings accounts

New Maryland law requiring full insurance coverage for vasectomies could invalidate health savings accounts

A new law that makes it easier for Marylanders to get birth control, including vasectomies, through their health insurance, has unexpectedly put some tax deductible savings plans in jeopardy because such coverage conflicts with federal IRS rules.

The state law that passed in 2016 and went into effect January 1, requires that health insurance plans cover most forms of birth control with no out-of-pocket charges, such as co-pays. The law, lauded as one of the most comprehensive contraception initiatives in the country, includes coverage of vasectomies, or male sterilization.

But IRS rules that govern health savings accounts, or health plans that allow people to put aside...

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