Telehealth Flexibility Sunsetting in 2025
As a result of the CARES Act in 2020, HDHPs were permitted to provide first dollar telehealth coverage without negatively impacting HSA eligibility. This relief initially sunset in 2023. The Consolidated Appropriations Act, 2023 provided a two-year extension of the relief, with will not expire December 31, 2024.
There are bipartisan bills pending in Congress that would extend this flexibility through 2026, or make this relief permanent. As of this writing, these bills are still making their way through the legislative process.
With only a month left in 2024, plan sponsors should prepare to comply with the changes unless an extension is granted. Plans with an effective date of January 1, 2025 will need to ensure this flexibility has sunset; however, for non-calendar year plans, plan sponsors will have until the 2024-2025 plan year ends.
Drug Enforcement Administration Extends Flexibility for Prescribing Controlled Substances
The DEA has released new guidance temporarily extending the flexibilities for prescribing controlled medications via telemedicine. This flexibility was a result of the COVID-19 pandemic and allows practitioners to prescribe Schedule II-V controlled substances without the need for an in-person evaluation of the patient, assuming the requisite conditions have been met.
Initially, this flexibility was set to expire December 31, 2024; however, with this extension, the flexibility will not expire until December 31, 2025. The DEA has stated that this extension will give it time to finalize final rules for telemedicine prescribing of controlled medications, which will account for the feedback it has received through public comments. Final regulations are expected in 2025 to provide practitioners with enough time to come into compliance prior to the end of 2025.
IRS Rules Expand Preventive Services Under HDHPs
The IRS has released guidance expanding the list of preventive services permitted to be provided through an HDHP without cost share. Notice 2024-75 permits HDHPs to provide over-the-counter contraception, male condoms, continuous glucose monitors, certain insulin products, and breast cancer screening services on a pre-deductible basis.
The IRS also released Notice 2024-71 which provides a safe harbor under Section 213 of the Internal Revenue Code for amounts paid for condoms. This means amounts paid toward condoms would be eligible to be paid/reimbursed under Health Savings Accounts (HSA), Flexible Spending Accounts (FSA), and/or Health Reimbursement Accounts (HRA).
The notices are effective immediately due to their retroactive effective dates ranging from April 2004 to December 2022, depending on preventive service. Plan sponsors wishing to update their plans to include the new preventive care benefits in their plans should discuss their options with their insurance carriers or third-party administrators.
Blurb:
As 2024 comes to a close there are a number of changes employers sponsoring High Deductible Health Plans (HDHPs) should be mindful of. Are you prepared to comply?
