Sponsors (18)
The bill preserves HSA eligibility and lowers out-of-pocket costs for telehealth, making virtual care more accessible and simpler for employers to offer, while creating modestly higher health spending that could raise premiums and causing short-term administrative work for plan sponsors.
People with HSAs (including patients with chronic conditions) can use telehealth services before meeting their deductible year-round while keeping HSA eligibility, lowering their out-of-pocket costs for virtual care.
Employers and plan sponsors (including small businesses and state governments) can offer telehealth coverage without jeopardizing employees' HSA eligibility, simplifying benefits design and reducing uncertainty about plan compliance while preserving tax-advantaged HSA treatment for consumers.
Taxpayers and middle-class families could face modestly higher health insurance premiums over time if removing deductible limits increases pre-deductible telehealth utilization and overall health spending.
Small-business owners, state governments, and health systems may incur short-term administrative and plan redesign costs to update benefits and ensure compliance with the new telehealth/HSA rules.
Based on analysis of 2 sections of legislative text.
Introduced February 27, 2025 by Jodey Cook Arrington · Last progress February 27, 2025
Permanently allows health plans that pair with Health Savings Accounts (HSAs) to waive or not apply a deductible for telehealth services without losing HSA eligibility by changing Internal Revenue Code section 223. The change removes prior time limits and makes the telehealth deductible "safe harbor" broadly applicable for plan years beginning after December 31, 2024, so more enrollees and plans can offer telehealth with no deductible year-round.