Can I use my HSA for telemedicine? Telemedicine HSA eligibility clarified

Telemedicine HSA eligibility criteria explained

Telemedicine has made significant strides, reshaping how healthcare is delivered and making medical services more accessible. With the recent surge in its popularity, it's crucial to understand how implementing this benefit could impact your business and your employees' health savings accounts (HSAs). For HR professionals, employers and plan sponsors, knowing the intricacies of telemedicine’s influence on HSA eligibility is essential.

[Download the entire story] to access links and charts from the IRS on HSA eligibility requirements and HSA-compatible coverage types. For a summary, read on.

The intersection of telemedicine and HSA eligibility

Did you know that offering a telemedicine benefit could affect an employee's eligibility for HSA contributions? The IRS has yet to issue direct guidance on this topic; however, general rules governing HSA contributions can help inform your decisions. The structure of your telemedicine benefit could determine whether it is considered disqualifying coverage that impacts HSA eligibility.

Recent legislative updates

The CARES Act and subsequent federal legislation have provided temporary relief, allowing high-deductible health plans (HDHPs) to offer telemedicine services without affecting HSA eligibility. But this rule expires for plans beginning after Dec. 31, 2024. Now is the perfect time to evaluate your health benefits and make strategic decisions that could benefit your company and employees.

Why does this matter?

1. Access to healthcare

Enhancing your employee benefits with telemedicine could make healthcare more accessible, particularly for employees in rural areas or those with demanding travel schedules. By reducing the need for in-person consultations, your employees can achieve a better work-life balance while you control health coverage costs.

2. Staying compliant

It's vital to consider any telemedicine compliance issues, especially if your company sponsors HDHPs. Ensuring your telemedicine offerings align with HSA regulations will prevent employees from being disqualified from making HSA contributions.

Exclusive insights await

Download our comprehensive guide to leverage the advantages of telemedicine while maintaining HSA eligibility. It's packed with charts detailing HSA eligibility requirements and the types of coverage compatible with HSAs. These insights will equip you with the knowledge to optimize your employee benefits strategy.

[Download the entire story now]

Get ahead of the curve and make informed decisions that will positively impact your organization. If you want more information on employee benefits services and management, contact TruePlan Benefit and Retirement Advisors today.

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