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It can be problematic for employers to offer a telemedicine benefit if they have a high deductible health plan (HDHP). A telemedicine benefit generally constitutes as a health plan and doesn’t fit into a Health Savings Account’s (HAS) eligibility requirements. Employees’ HSA eligibility could be in jeopardy unless the HDHP is structured properly.
The Cares Act had offered temporary relief to this issue. HDHPs were allowed to provide telemedicine benefits before the satisfaction of the HDHP deductible without losing HSA eligibility. The relief only applied for plan years beginning on or before December 31, 2021. For plan years beginning on or after January 1, 2022, relief was no longer available.
President Biden recently extended the CARES Act relief to be effective from April 1, 2022 through December 31, 2022. An HDHP can cover all telemedicine benefits without imposing minimum HDHP deductibles.
For questions, contact your NIS Employee Benefit Consultant.
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National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.
