Compliance Corner

COVID-19 Updates

Telehealth Relief Extended

March 15, 2022

On March 15, 2022, President Biden signed the Consolidated Appropriations Act of 2022 (CAA 2022) into law. The law extends relief that allowed individuals to access and use telehealth services without losing their eligibility for HSAs. The CARES Act first provided this relief. Before the CARES Act, most services (such as telehealth services) that provided significant medical care before the HDHP statutory minimum deductible was met could render individuals ineligible for HSAs. The CARES Act created an exception for telehealth services, but applied it to telehealth services performed after January 1, 2020, with respect to plans years that began on or before December 31, 2021. The CAA 2022 re-established this relief for services provided after March 31, 2022 and before January 1, 2023.

For a calendar year HDHP, this extension leaves a gap in the first three months of 2022. Individuals who have access to telehealth services during that time will not be eligible to contribute to their HSAs (although they are potentially eligible for the other nine months of the year).

Employers should be aware of this extension. Plans that choose to adopt the relief should be revised to reflect these changes, and the changes should be communicated to employees through an SMM.

Consolidated Appropriations Act of 2022 ยป