By Leslie Krigstein, VP, Communications & Government Affairs
The recent congressional year-end funding package delivered an unwelcome surprise to millions of Americans who rely on telehealth and other virtual care services through their high-deductible health plans (HDHPs). By failing to extend the telehealth safe harbor provision before leaving for the year, Congress is disadvantaging workers and their families who have come to depend on affordable virtual healthcare services.
Since 2020, this critical provision has enabled HDHP participants to access telehealth services without first meeting their deductibles while maintaining their HSA eligibility. This flexibility has proven transformative, particularly for those seeking routine preventive care, mental health services, and specialty care consultations. However, now that Congress has completed their work for the year, this provision will expire on December 31, 2024.
The implications of this expiration are significant. Starting in 2025, Americans with HDHPs will face substantially higher out-of-pocket costs for telehealth and other virtual care services until they meet their deductibles. This financial barrier could lead many to delay necessary care, potentially resulting in worse health outcomes. We might also see more Americans headed to the ER for issues that could be easily resolved with a virtual visit. The impact will be particularly acute for individuals managing chronic conditions who benefit from regular virtual check-ins with their healthcare providers.
The expiration of this provision represents more than a policy setback—it threatens to undermine years of progress in healthcare accessibility. Telehealth has evolved beyond its role as a pandemic necessity to become an essential component of modern healthcare delivery. Its value proposition extends beyond convenience, offering a cost-effective solution that has demonstrably improved access to care for millions of Americans.
At Transcarent, we recognize the profound implications of this development for our clients and their employees. While we remain committed to supporting our clients through this transition and ensuring compliance with updated regulations, we believe that more must be done to protect affordable and accessible healthcare options for American workers.
Looking ahead, Transcarent will continue to advocate vigorously for the reinstatement of the telehealth safe harbor provision and a permanent solution. We believe temporary extensions are insufficient—this policy deserves permanent status to provide the stability and certainty that employers and employees need. The demonstrated success of telehealth in improving healthcare access, affordability, and outcomes makes an irrefutable case for its permanent integration into our healthcare system.
The path forward requires sustained advocacy and engagement from all stakeholders who recognize the vital role of telehealth in modern healthcare delivery. We must work collectively to ensure that progress in healthcare accessibility is not just preserved but advanced for the benefit of all American workers.
