- On December 23, 2024
On Saturday, December 21, 2024, President Biden signed the American Relief Act of 2025 (ARA) into law, averting a federal government shutdown. After intense negotiations, Congress reached a deal Saturday just in time for the holidays, opting to fund the government at current levels through March 14. Failing to reach a deal would have resulted in the first shutdown of the federal government since 2019.
Notably, the ARA does not include an extension of COVID-era provisions enabling individuals to receive first-dollar telehealth coverage for non-preventive services while contributing to a health savings account (HSA). Normally, to be eligible to make or receive HSA contributions, individuals cannot be covered by a health plan that provides benefits, except preventive care benefits, before the minimum deductible is satisfied for the year. Generally, individuals who are covered by telehealth programs that provide free or reduced-cost medical benefits are not eligible for HSA contributions. However, due to the pandemic-related relief, High-Deductible Health Plans (HDHPs) have been able to waive the deductible for telehealth services without jeopardizing individuals’ HSA eligibility. Since Congress did not extend the COVID-era flexibility for HSAs and first-dollar non-preventive telehealth services, the relief expires December 31, 2024.
Carriers and group health plan sponsors should ensure that HDHP plan participants making or receiving contributions to an HSA are charged a fair-market value for non-preventive telehealth visits in the 2025 plan year until they meet their deductible. While it is possible Congress will pass a retroactive fix in 2025, for now, employers should prepare to charge a fair market value for telehealth services.