The Internal Revenue Service has released Rev. Proc. 2024-25 announcing the inflation-adjusted limits for high deductible health plans (HDHPs) and health savings accounts (HSAs) in 2025. The updated 2025 limits are as follows:
High deductible health plan (“HDHP”) sponsors take note: the Continuing Appropriations Act, 2023 (“CAA23”) temporarily extends the flexibility for HDHPs to provide pre-deductible coverage of telehealth services without affecting the ability to contribute to a HDHP participant’s Health Savings Account (“HSA”).
As we discussed, due to relief first provided in the CARES Act and then extended in Consolidated Appropriations Act, 2022 (“CAA22”), HDHP participants were permitted to receive pre-deductible coverage of telehealth and remote care services during the COVID-19 pandemic without adversely affecting their ability to make or receive contributions to an HSA, except for a few months in the beginning of 2022. This relief was set to expire on December 31, 2022. CAA23 extends this relief through plan years that begin before January 1, 2025.Continue Reading Telehealth Safe Harbor Extended
Though much of U.S. government-sponsored pandemic relief has expired as the country approaches it third new year since its first reported cases of COVID-19, pandemic-related law changes exist that continue to impact employee benefit plans, and it is important that plan sponsors and administrators pay close attention to these changes as the new year approaches.