Telehealth Relief Extended but Faces Uncertainty Beyond January 2025

Telehealth coverage in HDHPs remains intact until 2025, but future contributions to HSAs may be at risk without reintroduced extensions in the budget.

In light of the COVID-19 pandemic, a new relief measure was introduced, allowing first-dollar coverage for telehealth services under high deductible health plans (HDHPs) without affecting the eligibility to contribute to health savings accounts (HSAs).

This important provision has been extended for plan years beginning prior to January 1, 2025.

Continuation of Telehealth Provisions

Initially, the 2025 budget proposal included plans for a two-year continuation of telehealth provisions tied to HSAs.

However, this aspect did not make it into the finalized budget bill that President Biden endorsed in late December.

The streamlined budget aims to ensure the federal government operates smoothly until March 14, 2025.

Despite this setback, industry stakeholders hold onto hope that future budget discussions may create an opportunity to revitalize the telehealth extension.

End of Current Relief Measure

Presently, the relief measure for telehealth services has come to an end.

Starting January 1, 2025, individuals looking to utilize telehealth before meeting the HDHP deductible will face a loss of eligibility for HSA contributions, unless an alternative exception applies.

Source: Natlawreview