HSA

During the COVID-19 Public Health Emergency (PHE) and National Emergency, numerous requirements were introduced for group health plans, which were generally aimed at ensuring individuals did not forgo testing or treatment for COVID-19 because they could not afford to pay for such services.

Representative Adrian Smith (R-NE), along with several co-sponsors have re-introduced the Homecare for Seniors Act — a bill that would allow funds to be used from health savings accounts (HSAs) for qualified home care services.

The IRS has posted a series of frequently asked questions addressing whether certain costs related to nutrition, wellness, and general health are medical expenses under Internal Revenue Code Section 213 that may be paid or reimbursed under a health savings account, health flexible spending arrangement, Archer medical savings account, or health reimbursement arrangement.

Representative Angie Craig (D-MN) has reintroduced the Affordable Insulin Now Act in the House.

Sen. John Kennedy, (R-La), has introduced the Telehealth HSA Act. The Act would make permanent the ability of high deductible health plans (HDHPs) to waive the deductible for telehealth services without causing plan participants to lose the ability to contribute to a health savings account (HSA).

The IRS has released final regulations amending rules intended to increase the filing of electronic returns in accordance with the Taxpayer First Act of 2019.

Representative Andy Biggs (R-AZ) has introduced H.R. 107, the Freedom for Families Act, which proposes the following.

• Provide that distributions from health savings accounts (HSAs) during periods of qualified caregiving are not includible in gross income
• Remove the requirement that an individual be covered under a high deductible health plan in order to contribute to an HSA
• Increase the annual contributions limits to $9,000 for single coverage and $18,000 for family coverage

Under the proposal, periods of qualified caregiving are defined as any period during which an individual is on leave or not employed because of the following reasons.

• Birth of the employee’s child and the period required to care for such child
• Placement of a child with the employee for adoption or foster care
• Caring for the employee’s spouse, son, daughter, or parent, because of a serious health condition
• A serious health condition that makes the employee unable to perform the functions of her position
• Certain emergencies as a result of covered active duty or notification of order to covered active duty in the Armed Forces by the employee’s spouse, son, daughter, or parent

The bill has been referred to the House Committee on Ways and Means.

On December 29, 2022, the Consolidated Appropriations Act of 2023 (CAA 2023)—which serves to fund the federal government for a full year—was enacted. Included in CAA 2023 is a provision granting a two-year extension allowing high deductible health plans (HDHPs) to waive the deductible for telehealth and other remote care services without causing plan participants to lose the ability to contribute to a health savings account (HSA). The two-year extension is in effect January 1, 2023, through December 31, 2024.

Highlights regarding the extension are as follows:

• Telehealth services do not need to be preventive or related to COVID-19 to qualify for the relief;
• An employer is not required to waive the deductible for telehealth services;
• The relief applies on a monthly basis rather than a plan year basis. As a result, non-calendar year HDHPs that provide first dollar coverage for telehealth services must modify their plan design mid-year effective January 1, 2025;
• Employers who offer a fully-insured HDHP should contact their insurance carrier to confirm the insurer will continue to provide first dollar coverage for telehealth services; and
• Employers who will continue to waive the deductible for telehealth services should communicate this extension to individuals covered under a HDHP.

The Office of Management and Budget has received a final rule from the IRS titled “Electronically Filed Returns”.

The IRS released a proposed rule in July 2021 regarding electronic filing requirements for certain information returns, pursuant to the Taxpayer First Act of 2019. The proposed regulations reduce the threshold by which filers must electronically file from 250 to 100 returns for the 2022 calendar year. For filings required after calendar year 2022, the threshold will be further reduced to 10 returns.

The Departments of Labor, Health and Human Services and Treasury issued a joint FAQ related to the coverage of contraceptive products as preventive services by group health plans or issuers. The FAQ provides the following:

• Group health plans and issuers are required to cover items or services that are integral to the furnishing of a recommended preventive service. The FAQ clarifies that coverage of anesthesia for a tubal litigation procedure or pregnancy tests required prior to the provision of an intrauterine device would be considered preventive services.