Compliance News Week Ending December 20, 2024

Updated - Compliance News Week Ending December 20, 2024

In this Article

UPDATED- Telehealth HSA Relief Extension is On It's Way (Probably)

Hospital Indemnity Notice Requirement Struck Down

Telehealth plans with no cost-sharing are incompatible with high deductible health plans (HDHPs); they are disqualifying coverage and cause a loss of HSA-eligibility. But it’s easy to forget that since we have been living with pandemic-era temporary relief allowing telehealth with no cost-sharing to be offered alongside an HDHP without affecting HSA-eligibility.

The current extension is set to expire at the end of the 2024 plan year, but in a repeat of what happened in 2022, it appears Congress is poised to extend the relief at the last minute.

As many predicted, the recently proposed budget bill to avoid a government shutdown contains a provision extending the telehealth relief another two years through the end of 2026 plan years. While the bill has not passed yet, given the bill is likely a must-pass to avoid a shutdown, it seems highly likely we will have an extension of the telehealth HSA relief before the end of the year.

Hospital Indemnity Notice Requirement Struck Down

In final rules issued by the DOL, HHS and the IRS this past summer, beginning in 2025, hospital indemnity and other fixed indemnity plans were required to include a new notice in any application, enrollment, and marketing materials. This notice requirement was challenged by several insurance companies as not being authorized by law.

On December 4th, a district court judge agreed with those companies and struck down the new notice requirement. While the government could still appeal this ruling, it seems unlikely they will do so given the incoming Trump administration. And even if they did, the new administration could halt the appeal. So, for now, the notice requirement is not enforceable.

^{While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice or services. Readers should always seek professional advice before entering into any commitments.}