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 conside...

HSA/HDHP limits will increase for 2025  On May 9, the IRS released Revenue Procedure 2024-25 to provide the inflation-adjusted limits for health savings accounts and high-deductible health plans for 2025. The IRS is required to publish HSA/HDHP limits by June 1 each year. These limits include:  the maximum HSA contribution limit;  the minimum deductible amount for HDHPs; and  the maximum out-of-pocket expense limit for HDHPs.  These limits vary based on whether an individual has self-only or family coverage under an HDHP.  Eligible individuals with self-only HDHP coverage will be able to contribute $4,300 to their HSAs in 2025, up from $4,150 in 2024. Eligible individuals with family HDHP coverage will be able to contribute $8,550 to their HSAs in 2025, up from $8,300 in 2024. Individuals age 55 or older may make an additional $1,000 “catch-up” contribution to their HSAs.  The minimum deductible amount for HDHPs increases to $1,650 for self-only cover...

On May 16, the IRS released  Revenue Procedure 2023-23 , which provides the inflation-adjusted limits for health savings accounts and high-deductible health plans for 2024. The IRS is required to publish these HSA and HDHP limits by June 1 of each year. These limits include: the maximum HSA contribution limit; the minimum deductible amount for HDHPs; and the maximum out-of-pocket expense limit for HDHPs. These limits vary based on whether an individual has self-only or family coverage under an HDHP. Eligible individuals with self-only HDHP coverage will be able to contribute  $4,150  to their HSAs for 2024, up from $3,850 for 2023. Eligible individuals with family HDHP coverage will be able to contribute  $8,300  to their HSAs for 2024, up from $7,750 for 2023. Individuals age 55 or older may make an additional $1,000 “catch-up” contribution to their HSAs. The minimum deductible amount for HDHPs increases to  $1,600  for self-only coverage and  $3...