Congress Fails to Extend Pre-Deductible Telehealth Coverage for HDHPs in 2025

The 2020 CARES Act allowed high deductible health plans (HDHPs) to cover the cost of telehealth services without cost to participants before the HDHP deductible had been satisfied. HDHPs providing telehealth coverage did not jeopardize their status as HDHPs.  These provisions were temporary and had only been extended through 2024.  At the last minute, a provision that would have extended telehealth coverage was stripped from the 2025 Relief Act that was signed into law late in December.  As a result, as of January 1, 2025 HDHPs are no longer permitted to reimburse telehealth and remote healthcare services on a pre-deductible basis to participants with health savings accounts (HSAs).  For more information on the rules governing HDHPs, visit Tax Facts Online. Read More: Link to Q394.  Note: Q394 and Q8828 are updated.