Legislation includes HSA eligibility and telehealth provision

Health savings account (HSA) and high-deductible health plan (HDHP) participants are about to gain additional flexibility regarding telehealth expenses. Congress has passed the Consolidated Appropriations Act, 2022. President Biden signed CAA-22 into law on March 15, 2022. 

CAA-22 temporarily reinstates rules around telehealth services and HSA eligibility that were in place with the signing of the CARES Act. Under the CARES Act, an HDHP with an HSA was permitted to cover telehealth or remote care expenses, even if the participant hadn’t reached the deductible. This provision of the CARES Act expired December 31, 2021. 

CAA-22 extends the CARES Act relief for access to telehealth services in the HSA context between April 1, 2022 and December 31, 2022. Without this extension, HDHP participants who accessed telehealth services before reaching their deductible could have lost eligibility to contribute to an HSA. 

If telehealth is new to you, check out our blog post to learn what to expect when scheduling an appointment. 

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.