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In response to the COVID-19 pandemic, Congress enacted legislation which temporarily allowed high deductible health plans (HDHPs) to provide telehealth service benefits before plan deductible were met. It has been repeatedly extended since 2020 and it currently applies to plan years beginning before January 1, 2025.
To qualify for health savings account (HSA) contributions, individuals must not have a health plan offering non-preventive benefits before meeting the HDHP deductible. Typically, those with telehealth plans providing free or low-cost benefits are not eligible, but pandemic relief has allowed HDHPs to waive deductibles for telehealth services without affecting HSA eligibility.
Bipartisan support exists to extend telehealth relief for HDHPs, but new legislation might not arrive until late 2024 or later. If not extended, HDHPs will need to start imposing telehealth deductibles from January 1, 2025. The 2025 minimum deductible will be $1,650 for individuals and $3,300 for families.
Employers with HDHPs should assess their telehealth coverage for the 2025 plan year. If relief isn’t extended, deductibles for telehealth must align with HSA requirements. Employers can communicate any updates to employees via an updated plan summary. Download the bulletin for more details.
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.
