Tax-advantaged contributions generally cannot be made to an HSA unless the account holder is covered by an HDHP and does not have disqualifying non-HDHP coverage. Congress created exceptions to those rules to facilitate the use of telehealth during the COVID pandemic, but the exceptions applied only to plan years beginning on or before December 31, 2021 and for the last nine months of 2022 without regard to plan year. The Consolidated Appropriations Act of 2023 (CAA 2023) once again extends the exceptions by providing that telehealth and other remote care services will be considered disregarded coverage—and thus will not cause a loss of HSA eligibility—during plan years beginning after December 31, 2022, and before January 1, 2025. In addition, HDHPs may provide coverage for telehealth and other remote care services during those plan years before the minimum deductible is satisfied without losing their HDHP status.

NOTE: It appears that non-calendar-year HDHPs will have a gap between the end of 2022 and the beginning of the 2023 plan year during which the relief does not apply. However, individuals covered under these plans may be able to use the full contribution rule (sometimes referred to as the “last-month rule” or the “no-proration rule”), which allows a full year’s worth of HSA contributions to be made by someone who is HSA-eligible for only a portion of the year.