COVID-19 Relief for Telehealth Services Under HDHP Ends in 2025

TL/DR –

During the COVID-19 pandemic, a new relief measure allowed first dollar coverage for telehealth services under a high deductible health plan (HDHP) without affecting health savings account (HSA) eligibility. This relief was extended for plan years starting before January 1, 2025. However, as of now, the telehealth relief has ended and for plan years beginning on or after January 1, 2025, pre-HDHP deductible coverage for telehealth services will disqualify an individual from contributing to an HSA unless another exception applies.

COVID-19 Relief Allowed First Dollar Coverage for Telehealth Services: What’s Next?

During the COVID-19 crisis, new relief measures allowed first dollar coverage for telehealth services under a high deductible health plan (HDHP) without affecting health savings account (HSA) eligibility. This relief was extended for plan years starting prior to January 1, 2025. For more information on the initial relief and subsequent extensions, you can read our articles here, here, and here.

An earlier version of the 2025 budget bill proposed a two-year extension of this HSA telehealth safe harbor relief. Unfortunately, this provision was not included in the slimmed down version of the budget bill signed by President Biden in late December. This stopgap budget bill is meant to keep the Federal government running through March 14, 2025. Industry members are hoping that the telehealth extension will come up again during future budget negotiations.

As it stands now, the telehealth relief has ended. For plan years starting on or after January 1, 2025, pre-HDHP deductible coverage for telehealth services will disqualify an individual from contributing to an HSA unless another exception applies. This article provides a general guide on the matter, consult a specialist for advice about your specific circumstances.

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