As part of a year-end spending bill, lawmakers extended the pre-deductible designation of telehealth services through December 31, 2024, for calendar-year plans. The move extends the relief granted in the 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act benefitting individuals enrolled in a high deductible health plan (HDHP).
Traditionally, with limited exceptions, an HSA participant enrolled in a HDHP doesn’t receive first-dollar health plan benefits until out-of-pocket expenses exceed the plan’s annual deductible. Those upfront qualified expenses can then be reimbursed with pre-tax HSA dollars. By designating telehealth services as a pre-deductible expense, individuals don’t have to forego the pre-tax HSA reimbursement.
Telehealth use reached record levels during the pandemic, with most major health plans expanding coverage to include mental health services. One industry study found that 43% of organizations expanded telehealth services throughout the COVID-19 pandemic, while 49% maintained existing telehealth benefits.