CAA 2023 Appropriations Bill Restores Telehealth Exemption for HDHP’s Through 2024

During the final week of December 2022, Congress approved the Consolidated Appropriations Act, 2023 which included, among other provisions affecting employers, a temporary telehealth services safe harbor for High Deductible Health Plans first-dollar coverage without violating Health Savings Account contribution rules.

This CAA 2023 HSA relief is an extension of the CARES Act and CAA 2022 provisions, which provided the same telehealth relief for plan years beginning on or before December 31, 2021, and subsequently from April 2022 – December 2022.

The practical effect of the relief is that HDHPs may choose to waive the deductible for any telehealth services through 2024 without causing participants to lose HSA eligibility.  The provision is optional—HDHPs are not required to waive the deductible that would otherwise apply to non-preventive telehealth services.

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