HR 1650119th CongressIn Committee

Telehealth Expansion Act of 2025

Introduced: Feb 27, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Telehealth Expansion Act of 2025 would permanently extend the exemption that allows telehealth services to be treated as outside the deductible rules of high deductible health plans (HDHPs). In practical terms, telehealth visits would not count toward meeting an HDHP’s deductible, and coverage for telehealth could be provided without requiring the consumer to first meet the deductible. The bill rewrites specific Internal Revenue Code provisions to make this treatment universal (not limited to certain cases or plan years) and applies to plan years beginning after December 31, 2024. The sponsor group indicates bipartisan support in the introduction, and the bill has been referred to the Ways and Means Committee.

Key Points

1Permanently extends the telehealth safe harbor: Telehealth services will not count toward or be subject to the deductible requirements under HDHP rules, continuing beyond temporary or sunset provisions.
2Broader, permanent application: The language change removes case-specific limitations and ensures the exemption applies to all HDHPs and related plans.
3Specific code changes: The bill amends sections 223(c)(2)(E) and 223(c)(1)(B)(ii) of the Internal Revenue Code to implement the permanent exemption.
4Effective date: The amendments take effect for plan years beginning after December 31, 2024 (i.e., beginning with 2025 plan years).
5Legislative context: Introduced in the House (H.R. 1650) and referred to the Committee on Ways and Means; sponsors include Rep. Arrington and several other members.

Impact Areas

Primary group/area affected: Individuals who have high deductible health plans (HDHPs) and HSAs. They would experience telehealth services being accessible before meeting a deductible and not counted toward the deductible, potentially reducing upfront out-of-pocket costs for telehealth visits.Secondary group/area affected: Employers offering HDHPs to employees, health insurers/plan sponsors, and telehealth providers. Employers and insurers may adjust plan designs or cost-sharing expectations, while providers may see greater utilization of telehealth services.Additional impacts: Potential effects on consumer behavior (greater use of telehealth when available pre-deductible), overall health care cost distribution (shifting some costs away from deductibles to insurer coverage for telehealth), and administrative considerations for plan design and compliance with the tax code.

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