Congress passes spending legislation that includes HSA eligibility and telehealth provision

March 29, 2022

Congress passes spending legislation that includes HSA eligibility and telehealth provision

On March 15, 2022, President Biden signed the Consolidated Appropriations Act (CAA), 2022 into law. The legislation consists of $1.5 trillion spending money, and while it is best known for preventing a government shutdown and providing aid to Ukraine, there is much more to the bill - including a revived telehealth services provision.

This provision allows participants to receive benefits under a High Deductible Health Plan (HDHP) before satisfying the minimum deductible and still qualify for contributions to a health savings account (HSA).

The provision starts on April 1, and remains active until December 31, 2022.

Coronavirus Aid, Relief, and Economic Security (CARES) Act
HDHPs with HSAs previously were permitted under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020, but the provision ended in 2021. Under the CAA 2022, the CARES Act telehealth provisions will be reinstated, with a few conditions. The provision is not retroactive for a calendar year, nor is it for plans with plan years that have already expired in 2022.

Plan sponsors may alert plan participants that telehealth and remote services will once again be covered before the HDHP deductible is satisfied.

More information on the Consolidated Appropriations Act, 2022 can be found here. For additional information contact the author at info@herbein.com

Article contributed by David Peritz.