Two-Year Extension on Telehealth Services Granted

January 5, 2023

On December 29, 2022, the Consolidated Appropriations Act of 2023 (CAA 2023) — which serves to fund the federal government for a full year — was enacted. Included in CAA 2023 is a provision granting a two-year extension allowing high deductible health plans (HDHPs) to waive the deductible for telehealth and other remote care services without causing plan participants to lose the ability to contribute to a health savings account (HSA). The two-year extension is in effect January 1, 2023, through December 31, 2024.

Highlights regarding the extension are as follows:

• Telehealth services do not need to be preventive or related to COVID-19 to qualify for the relief.
• An employer is not required to waive the deductible for telehealth services.
• The relief applies on a monthly basis rather than a plan year basis. As a result, non-calendar year HDHPs that provide first dollar coverage for telehealth services must modify their plan design mid-year effective January 1, 2025.
• Employers who offer a fully-insured HDHP should contact their insurance carrier to confirm the insurer will continue to provide first dollar coverage for telehealth services.
• Employers who will continue to waive the deductible for telehealth services should communicate this extension to individuals covered under a HDHP.